NY — State Policy Updated 2026-07-17

New York

State-level, data-center-specific incentives Local/transactional incentives Statewide environmental and permitting constraints Moratoriums / zoning restrictions

1) Incentive programs

State-level, data-center-specific incentives

  • Sales and use tax exemption for internet data centers: New York continues to exempt qualifying Internet data center operators from sales tax on machinery, equipment, pre-written software, racks/cages, climate-control property, power equipment, qualifying building systems, and related services used directly in an Internet data center. The Tax Department identifies Tax Law §§1115(a)(37) and 1115(y) as the governing provisions and directs operators to use Form ST-121.5 for exempt purchases. NY Department of Taxation and Finance, 2026-02-23
  • Thresholds/conditions: The state tax bulletin defines the exemption around Internet web-site hosting and continuous traffic-management services; it does not impose a statewide minimum investment, job-creation threshold, or clean-energy condition for the sales/use-tax exemption. NY Department of Taxation and Finance, 2026-02-23
  • Fiscal size: The FY2027 tax-expenditure materials list “Internet data centers” as a state sales/use-tax expenditure with a 2026 forecast of $12 million, compared with $10 million in 2023, and classify the estimate reliability as 4C. NY Department of Taxation and Finance, 2026-02-23
  • No enacted statewide incentive expansion or repeal identified in this period: The Internet data-center exemption remained in force through July 17. A10216/S9288, which would repeal the exemption, remained in the Assembly Ways and Means and Senate Budget and Revenue committees, respectively; S9182B/A10852B, which would restrict NYPA economic-development power and IDA assistance, also remained in committee. Executive Order 62 announced that the Governor would pursue repeal legislation for “massive” data centers, but the order itself did not repeal the tax provisions. NY State Senate A10216 bill page, 2026-02-12 NY State Senate S9288 bill page, 2026-02-25 Governor Kathy Hochul, 2026-07-14

Local/transactional incentives (case-by-case)

  • Industrial Development Agencies (IDAs): Local IDAs remain the principal route for project-specific property-tax/PILOT, sales-tax, and mortgage-recording-tax assistance under General Municipal Law Article 18-A. Those incentives are negotiated locally rather than provided through a statewide data-center property-tax abatement program. New York General Municipal Law Article 18-A, current as of 2026-06-10
  • STREAM U.S. Data Centers - STAMP example: GCEDC’s March 2026 Stream materials show the scale of local incentive negotiations: Stream’s revised application increased project capital investment to $19.46 billion and proposed $285 million in PILOT/host revenues for Genesee County, the Town of Alabama, and the Oakfield-Alabama Central School District. Genesee County Economic Development Center, 2026-03-05
  • STREAM requested abatements: GCEDC’s March 12 cost-benefit analysis lists requested abatements of about $715.9 million in local sales tax, $715.9 million in state sales tax, $15.6 million in local mortgage-recording tax, and $15.6 million in state mortgage-recording tax, alongside projected local benefits of $1.96 billion against $673.3 million in local costs on a discounted basis. GCEDC/MRB cost-benefit analysis, 2026-03-12

2) Restrictions and moratoriums

Statewide environmental and permitting constraints

  • SEQRA environmental review: Large data center projects often require discretionary local, utility, or state approvals that can trigger State Environmental Quality Review Act review and mitigation requirements. NY DEC SEQRA guidance, current as of 2026-06-10
  • Environmental-justice SEQRA rules took effect: DEC adopted amendments to 6 NYCRR Part 617 on April 24, effective June 12, requiring agencies to evaluate whether proposed actions may cause or increase a disproportionate pollution burden on a disadvantaged community during significance determinations and, where applicable, environmental impact statements. These generally applicable rules now form part of the review framework for data-center projects. NY DEC, 2026-04-24
  • Environmental justice permitting law: Separate from the SEQRA amendments, the Environmental Justice Siting Law requires DEC to consider existing disproportionate burdens and potential project benefits when deciding specified Uniform Procedures Act permits affecting disadvantaged communities. NY DEC Environmental Justice Siting Law, 2026-06-12
  • Water withdrawal permits: Cooling-related withdrawals can require a DEC Water Withdrawal Permit when a non-agricultural withdrawal system has capacity to take 100,000 gallons per day or more. NY DEC Water Withdrawal Permit Program, current as of 2026-07-17
  • Air permitting: Backup generators and other stationary sources may require DEC air permits or registrations under New York’s stationary-source permitting program. NY DEC Air Permits and Registrations, current as of 2026-07-17

Moratoriums / zoning restrictions

  • Executive Order 62 created an operative statewide state-permit pause: On July 14, Governor Hochul directed DEC to hold in abeyance discretionary permit, approval, and license applications for construction or expansion of covered data centers unless DEC had determined the application complete before July 14. The pause lasts until DPS completes a statewide Generic Environmental Impact Statement and findings; the administration describes an expected period of up to one year. Local permits are expressly outside the order. New York Executive Order 62, 2026-07-14 Governor Kathy Hochul, 2026-07-14
  • Scope of Executive Order 62: The order covers a facility or group of facilities on the same or contiguous sites that consumes or can consume at least 50 MW and has the specified server, cooling, continuity, and data-service characteristics. Facilities used primarily for manufacturing, qualifying research, education (including accredited colleges, Empire AI, and the statutory institute), or medical care are excluded. The GEIS must assess energy demand, water use and quality, air quality, disproportionate impacts on disadvantaged communities, and noise through a formal public-comment and hearing process. New York Executive Order 62, 2026-07-14
  • A11560/S10642 remains a separate, broader bill: The Responsible Data Center Development Act passed both houses June 4 but the official bill page still showed only “Passed Senate & Assembly”—not delivery to or signature by the Governor—as of July 17. Its proposed one-year permitting moratorium uses a 20 MW threshold and would also enact public hearings, DEC reporting, utility/water service classes, host benefits, renewable/efficiency rules, and labor standards. Executive Order 62 did not enact this bill. NY State Senate A11560 bill page, 2026-06-04 Associated Press, 2026-07-14
  • Three-year moratorium proposal remained separate and pending: S9144A would impose a longer moratorium lasting at least three years and 90 days, require DEC environmental-impact reporting/regulations, and require PSC rate-impact work, but it remained in Senate Environmental Conservation Committee as of this update. NY State Senate S9144A bill page, 2026-05-12
  • Local zoning authority remains important: New York’s cities, towns, and villages retain zoning authority for siting, site-plan, special-permit, and PUD decisions unless state law specifically displaces that authority. The Niagara Digital Campus is the clearest 2026 example: Niagara Falls Redevelopment stated on June 4 that City Council approved settlement of litigation, established the PUD district, and made zoning changes allowing the project to proceed. New York Town Law §261, current as of 2026-06-10 New York Village Law §7-700, current as of 2026-06-10 Niagara Falls Redevelopment, 2026-06-04
  • Local moratoria proliferated before and alongside the state order: Lysander adopted Local Law 4 of 2026, a six-month pause on applications for data storage facilities; Highland enacted a 12-month large-scale-data-center moratorium extendable to 24 months; East Fishkill adopted Local Law 3-2026 on June 25, placing a three-year freeze through July 1, 2029 on data centers above 20 MW except specified ancillary or economic-development uses; Clifton Park adopted Local Law 9 of 2026 on July 7, imposing a 12-month pause on data storage center applications; and Manlius approved a 12-month moratorium on data processing centers and commercial cryptocurrency mining by a 7-0 vote on July 9. Town of Lysander Local Law 4, 2026-04-16 Town of Highland, 2026-06-18 Town of East Fishkill law ledger, 2026-06-25 Town of Clifton Park Local Law 9 adoption notice, 2026-07-07 Town of Manlius, 2026-07-09
  • Dryden made its pause permanent through zoning: When Dryden’s temporary moratorium expired in February, Local Law 3-2026 amended the zoning code to define data centers and make clear that uses not expressly permitted are prohibited; because data centers were not added to the allowable-use chart, the Town treats them as prohibited. This replaced the moratorium with an exclusionary zoning rule rather than reopening applications. Town of Dryden zoning code, 2026-02-19 WBNG, 2026-02-23
  • Brookhaven joined on the cutoff date: After a July 16 hearing, the Brookhaven Town Board approved an 18-month moratorium on new data-center applications while it develops comprehensive siting rules addressing land use, energy and water, noise, heat, visual effects, environmental resources, infrastructure, and safety. Town of Brookhaven hearing notice, 2026-06-12 News 12 Long Island, 2026-07-17

3) Local governance and preemption

4) Legislative activity (2024-2026)

Passed both houses, not delivered or signed as of July 17

  • A11560/S10642 - Responsible Data Center Development Act: Passed both houses on June 4, 2026, but remained at the “Passed Senate & Assembly” stage on the official status page as of July 17. The Governor instead issued Executive Order 62 on July 14; the executive action is narrower and legally distinct from the pending bill. NY State Senate A11560 bill page, 2026-06-04 New York Executive Order 62, 2026-07-14

One-house passage

  • A9297A/S10546 - host-community benefit / Homegrown Energy proposal: The amended Assembly bill passed that chamber May 18 and was delivered to the Senate; its Senate companion remained in Energy and Telecommunications. It would require new data centers or expansions adding at least 20 MW to fund host-community residential utility credits or household electrification technologies through a PSC-designed program. NY State Senate A9297A bill page, 2026-05-18 NY State Senate S10546 bill page, 2026-05-20

Other pending bills as of July 17

  • S6394B/A9086B - Sustainable Data Centers Act: S6394 was amended to S6394B and recommitted to Senate Energy and Telecommunications on May 30, 2026; the bill would require disclosure of energy, emissions, waste heat, water, labor, and related information; direct energy-consumption-efficiency goals; restrict fossil-fuel PPA incentives; and provide for community discount planning. NY State Senate S6394B bill page, 2026-05-30
  • S9182B/A10852B - Stop Subsidizing Data Centers Act: The May 2026 amended versions would bar economic-development power allocations to data centers, cap or bar IDA assistance for large data centers, require clawbacks for job shortfalls, make DEC mandatory SEQRA lead agency for actions consuming over 20 MW, and require EIS treatment for certain large projects. NY State Senate S9182B bill page, 2026-05-22 NY State Senate A10852B bill page, 2026-05-21
  • S8540A - Accountability of Costs for Data Centers Act: The May 29 amendment would require electric corporations, gas corporations, and municipalities to create separate service classifications for large energy-use facilities and allow DPS financial-surety requirements. NY State Senate S8540A bill page, 2026-05-29
  • S8546 - Grid modernization surcharge: This pending Senate bill would direct PSC to establish a surcharge on large data centers and high-intensity data centers, create a Grid Modernization Fund, and bar utilities from passing surcharge costs to other customer classes. NY State Senate S8546 bill page, 2026-01-07
  • S9144A/A10141A - three-year moratorium: The amended companion bills would impose a longer moratorium, require DEC environmental-impact reporting and regulations, and require PSC to address data-center electric/gas-rate impacts; both remained in environmental-conservation committees. NY State Senate S9144A bill page, 2026-05-12 NY State Senate A10141A bill page, 2026-05-12
  • A9136 - thermal energy networks: This pending Assembly bill would require data centers above 1 MW and major expansions permitted on or after January 1, 2027 to submit a thermal-energy-network feasibility assessment and design for waste-heat capture/reuse unless PSC determines infeasibility or undue hardship. NY State Senate A9136 bill page, 2026-01-07
  • S8645 - carbon-reduction plans and battery storage: This bill remained in Senate Energy and Telecommunications. It would require data centers of at least 1 MW to submit CLCPA-consistent carbon-reduction plans and authorize ORES to permit associated battery storage, including storage not co-located with renewables, if the plan includes an approved renewable or zero-emission source. NY State Senate S8645 bill page, 2026-01-07
  • A11423 - NDA/transparency bill: This May 2026 bill would make certain confidentiality provisions void and unenforceable for data centers and other large energy-intensive developments when the provisions restrict public discussion of environmental, infrastructure, utility, subsidy, ratepayer, noise, land-use, or public-health impacts. NY State Senate A11423 bill page, 2026-05-15
  • A10216/S9288 - sales/use-tax exemption repeal: These companion bills would repeal Tax Law §§1115(a)(37) and 1115(y), but neither advanced beyond committee. The Governor’s July 14 announcement of a future repeal effort did not change their status or the existing exemption. NY State Senate A10216 bill page, 2026-02-12 NY State Senate S9288 bill page, 2026-02-25 Governor Kathy Hochul, 2026-07-14
  • S10487 - Data Center Water Stewardship and Reuse Act: Introduced May 15 and still in Senate Environmental Conservation, this bill would require covered facilities to use water recycling/reuse, closed-loop cooling and conservation measures; phase down potable-water use; report publicly; and contribute to a water-stewardship fund. NY State Senate S10487 bill page, 2026-05-15
  • Session outcome: Apart from A11560/S10642’s two-house passage and A9297A’s Assembly passage, the reviewed data-center subsidy, reporting, tax, ratepayer, water, heat-reuse, transparency, and longer-moratorium bills did not receive two-house passage by the scheduled end of the regular session. Because these are 2025-2026 session bills, “remained in committee” or “one-house passage” is more precise than treating them as finally expired on July 17. NY State Senate A11560 bill page, 2026-06-04 NY State Senate A9297A bill page, 2026-05-18

Regulatory activity

  • PSC Case 26-E-0045 / Energize NY Development: PSC instituted a proceeding in February 2026 to review interconnection processes, cost-allocation mechanisms, and tariff structures for large loads, with DPS to solicit comments, hold a technical conference, and prepare a white paper for PSC consideration. Governor Kathy Hochul, 2026-02-12 NY DPS Case 26-E-0045 docket, 2026-02-12
  • Executive Order 62 expanded the PSC work program: DPS must use Case 26-E-0045 to develop the GEIS, consider a Grid Acceleration Fund and dedicated clean generation/storage, form a Data Center Interconnection Working Group within 60 days, convene transmission owners on large-load study and beneficiary-pays methods, and report to PSC within 90 days. DEC separately must report within 12 months on whether water-withdrawal rules, policies, guidance, or reporting need revision. New York Executive Order 62, 2026-07-14
  • NYISO large-load interconnection work: NYISO’s February 3, 2026 stakeholder presentation launched reliability-planning/large-load-integration work to improve the load interconnection process, evaluate broader reliability and transmission impacts, clarify modification rules, define milestones for reliability planning and STAR studies, and consider tariff revisions. NYISO, 2026-02-03

5) Notable projects and operators in New York

  • STREAM U.S. Data Centers - STAMP/Town of Alabama: GCEDC’s March 2026 materials identify a proposed data center project at STAMP with revised capital investment of $19.46 billion and proposed PILOT/host revenues of $285 million; the public hearing process and SEQR/site-plan document library were active in March 2026. Genesee County Economic Development Center, 2026-03-05 GCEDC projects page, current as of 2026-06-10
  • STREAM/Plug Power land transaction remains staged: On July 13, Plug Power and Stream amended the agreement for Plug’s Genesee County Project Gateway property, fixing the price at $142 million and enabling a near-term land closing. Plug will retain the substation and interconnection assets, plus a land repurchase right, until a second closing; the outside date for non-land assets moved to March 31, 2027 to allow additional New York environmental and regulatory review. The announcement therefore does not establish that the full transaction or data-center permitting was complete by July 17. Plug Power SEC filing, 2026-07-13
  • STREAM community/environmental opposition: Investigative Post reported that more than 200 people attended the March 19 public hearing, with residents and Tonawanda Seneca Nation members opposing the project and tax breaks; the reporting identified concerns about noise, natural lands, electricity use, water, diesel backup generation, and the scale of public subsidies. Investigative Post, 2026-03-20
  • Niagara Digital Campus - Niagara Falls: Niagara Falls Redevelopment stated on June 4, 2026 that City Council approved settlement of all litigation with the City of Niagara Falls, established the Planned Unit Development district, and implemented zoning changes allowing the Niagara Digital Campus to proceed. Niagara Falls Redevelopment, 2026-06-04
  • Hudson IX - 60 Hudson Street, NYC: Hudson InterXchange announced on May 19, 2026 that it planned to bring a second 1 MW data hall online in July 2026, following a first 1 MW hall already in service, with a roadmap to more than 10 MW of total capacity at 60 Hudson Street. GlobeNewswire/Hudson InterXchange, 2026-05-19
  • DataBank - Orangeburg, NY (LGA3): DataBank opened LGA3 in Orangeburg in May 2025 as a Hudson Valley AI/HPC-capable facility; its current facility page lists 110,000 IT square feet and 20 MW of critical IT load. DataBank, 2025-05-22 DataBank Orangeburg facility page, current as of 2026-06-10
  • TeraWulf - Lake Mariner and Lake Hawkeye/Cayuga: TeraWulf’s first-quarter filing supersedes the older year-end operating snapshot: as of March 31, Lake Mariner had 145 MW of legacy bitcoin-mining capacity and 60 MW of energized critical-IT HPC capacity, with 438 MW of contracted HPC load, a near-term gross-campus target of about 500 MW, and potential expansion to about 750 MW subject to further NYISO approvals. The same update describes the 183-acre Lake Hawkeye site in Lansing (held under the Cayuga lease) as in site-plan review, with about 150 MW in Phase I and 300 MW in Phase II. TeraWulf SEC Form 10-Q, 2026-05-08
  • NYISO queue snapshot: NYISO’s 2026 Gold Book Table IV-7 lists 48 load interconnection requests totaling 12,330.1 MW summer and 12,196.1 MW winter as of March 15, 2026, including WNY STAMP, 580 STAMP load increase, Niagara Digital Campus, Project Sycamore Orangeburg, Orangeburg Expansion Phase 2, a 1 GW East Fishkill data-center request, Lake Mariner Data II, Wulf Compute Data Center II, St. Lawrence Infrastructure 1 and 2, and other large data/technology projects. NYISO 2026 Gold Book, 2026-04
  • East Fishkill / Treetop proposal: A NYISO request contemplated a 1 GW campus, but the Town said no formal development application was before it and adopted a three-year moratorium on June 25; the freeze effectively blocks the 1.16-million-square-foot concept unless an exception applies. Town of East Fishkill law ledger, 2026-06-25 Data Center Dynamics, 2026-06-26
  • Kenwood Tech Center proposal - Albany: The owner of the former Kenwood Convent site described a proposed $570 million data center requiring up to 180 MW, but no municipal development application had been filed by June and the project remained an early proposal rather than an approved development. Times Union, 2026-06-12