Economy

N.Y. data center freeze adds to growing state backlash

Lawmakers in at least 14 states introduced bills that would implement a statewide construction break.
New York Gov. Kathy Hochul delivers the 2026 State of the State address, Tuesday, Jan. 13, 2026, in Albany, N.Y. (Darren McGee/ Office of Governor Kathy Hochul via AP)

New York Gov. Kathy Hochul’s executive order halting data center construction was the latest effort by states to press pause on the booming industry.

Lawmakers in at least 14 states — including Michigan, Pennsylvania and Wisconsin — introduced bills this year that would implement a statewide data center construction break. Maine was on track to be the first state to temporarily stop data center development, but Gov. Janet Mills vetoed the bill over concerns for a project that could revitalize a former paper mill site.

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