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Data Centres: Boom and Backlash
15JUL

New York freezes data centres by decree

2 min read
13:16UTC

New York's data-centre backlash turned binding on 14 July, when Governor Hochul froze new hyperscale permits by executive order rather than wait for her legislature. The same fortnight brought an approved 29% Oregon surcharge, an 8-0 Virginia zoning refusal, an Irish grid-fault curtailment procedure, and outright county bans in Indiana. The instruments are hardening from temporary pauses into permanent structure.

Key takeaway

Five jurisdictions turned temporary data-centre pauses into permanent tariffs, bans, zoning and grid-code rules in a single fortnight.

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Regulatory
Legal
Infrastructure

Governor Kathy Hochul froze new hyperscale data-centre permits across New York for a year on 14 July, signing an executive order rather than waiting on a bill still stuck on her desk.

Sources profile:This story draws on neutral-leaning sources

Governor Kathy Hochul signed an executive order on 14 July freezing new discretionary environmental permits for hyperscale data centres in New York for one year, sidestepping the state legislature entirely.

New York becomes the first state to enact a binding statewide freeze this way. A separate bill doing the same thing sits unsigned, so two tracks now run in parallel. 

Oregon regulators approved a 29% electricity-rate rise for data centres and other large loads on 7 July, cutting household bills as the biggest users absorb the grid's growing cost.

Sources profile:This story draws on neutral-leaning sources

Oregon's Public Utility Commission approved a 29% electricity-rate rise for data centres and other large loads on 7 July, effective the next day, while cutting residential bills 1.3%.

PGE becomes the first US utility to collect under a full-cost large-load tariff, a test case other states weighing similar cost-shift rules will watch through 2027. 

Prince William County supervisors voted 8-0 on 7 July to reject the Dulles South data-centre campus, using zoning powers the county already held rather than a lawsuit or new statute.

Sources profile:This story draws on neutral-leaning sources
Sources:WTOP

EirGrid and SONI issued a grid-fault curtailment procedure to data centres on 30 June, capping instantaneous demand loss at 900 MW to stop synchronised backup-power trips destabilising the grid.

Sources profile:This story draws on neutral-leaning sources

EirGrid and SONI issued a fault-ride-through procedure on 30 June setting a 900 MW ceiling on instantaneous demand loss from data centres, live from July, warning of grid imbalance above 1,150 MW.

It mirrors the curtailment powers US regulators already use against PJM-area data centres, arriving as EirGrid's own forecasts warn Irish supply may fall short through 2028. 

Hochul's executive order gave Empire State Development 60 days to write a Community Investment Framework, turning permit relief into a test of what campuses must return to host towns.

Sources profile:This story draws on neutral-leaning sources

Hochul's 14 July executive order also gave Empire State Development 60 days to publish a Community Investment Framework, setting what data-centre developers must offer local communities before the freeze lifts.

The framework rides inside the existing incentive-approval agency rather than a new regulator, betting operators negotiate New York's terms rather than route around them. 

Marshall and Cass counties banned new data centres outright, with no end date, part of roughly 30 of Indiana's 92 counties now restricting a build-out they once merely paused.

Sources profile:This story draws on neutral-leaning sources

Marshall and Cass counties in Indiana banned new data centres outright, joining roughly 30 of the state's 92 counties now restricting development, up from just 12 three weeks earlier.

Unlike a moratorium, a ban needs no follow-up zoning rules. Each of Indiana's 92 counties is voting on its own, without a governor's order or statehouse bill behind any of it. 

Sources:WFYI

An Indianapolis planning committee voted 10-3 on 13 July to recommend freezing new data-centre approvals through 2027, sending the state capital toward a clash with its pro-investment governor.

Sources profile:This story draws on neutral-leaning sources

Indianapolis's Metropolitan Development Commission committee voted 10-3 on 13 July to recommend a data-centre moratorium through December 2027, with the full council voting 10 August.

The freeze runs longer than most Indiana county pauses and sits awkwardly against Governor Mike Braun's continued courting of hyperscale investment like Meta's Lebanon campus. 

Sources:WFYI

FERC ordered its six regional grid operators to file generation-adequacy reports by 20 July, forcing them to show whether supply can keep pace with data-centre load growth.

Sources profile:This story draws on neutral-leaning sources

FERC required its six regional grid operators, including PJM and ERCOT, to file generation-adequacy reports by 20 July under docket RM26-4-000.

It is the evidence-gathering step in a slower process FERC chose over a binding rule in June, pushing any real large-load standard to 2027 at the earliest. 

Sources:FERC
Closing comments

Escalation here means durability, not headcount. April 2026's Maine moratorium fell to a veto; by mid-July the same demand pressure had produced a live executive freeze, Oregon's approved 29% tariff, a zoning denial under existing law, a grid-code procedure and outright bans, none of which needs annual renewal the way Maine's bill or Indiana's earlier county moratoria did. The mechanism that would tip it further is Hochul's decision on the Responsible Data Center Development Act: signing it would add the labour and ratepayer conditions her executive order left out and hand other governors a second template beyond her own. The mechanism that would reverse it is Q2 hyperscaler capex, due after 20 July, set against Meta's $10bn Lebanon campus: continued acceleration despite the restrictions signals operators are routing around the map rather than being deterred by it.

Different Perspectives
US host communities and ratepayers
US host communities and ratepayers
Prince William residents backed the 8-0 denial of Dulles South over the Occoquan watershed, drinking water for eight million people, while Oregon's approved tariff cuts residential bills 1.3% by charging large loads 29% more. Their position: consent and cost-attribution belong in law, not left to a developer's or a utility's discretion.
EirGrid
EirGrid
EirGrid set a 900 MW instantaneous demand-loss ceiling because a single voltage dip can trip many data centres onto backup power at once, risking imbalance above 1,150 MW. It wrote the limit into a standing procedure rather than waiting for an emergency to force one.
Global hyperscale operators
Global hyperscale operators
Operators are still filing gigawatt-scale campuses and Meta is proceeding with its $10bn Lebanon, Indiana site despite the county-level bans nearby, betting Q2 capex outruns the patchwork of restrictions. Industry framing casts New York's freeze, Oregon's surcharge and Indiana's bans as taxes and levies that push build-out toward faster-permitting jurisdictions such as India and the Gulf.