Data Center Site Selection in New York: NYISO, Hydropower and the 2026 Permit Pause

New York has a large carbon-free generation base, a cool climate, dense fiber and many former industrial and power plant sites. In 2023 the state produced more hydroelectric power than any other state except Washington and California, about 22% of in-state generation, and nuclear supplied almost 22% more.⁵ Most of that hydro and nuclear sits upstate, which is why most large data center proposals target Western and Central New York rather than the New York City area.

The constraints are political and procedural as much as physical. NYISO reports that statewide reliability margins are tightening as older plants retire and demand rises,¹¹ and the state has added a permit pause and a utility cost-allocation proceeding aimed directly at large loads.¹⁷ For the market structure, utility roles and capacity zones, start with our regional guide to New York and New England. This guide focuses on what is specific to New York State in 2026.

Governor Hochul signed Executive Order 62 on July 14, 2026. It immediately paused discretionary state environmental permits issued by the Department of Environmental Conservation (DEC) for any data center that can use 50 MW or more. The pause runs until the Department of Public Service completes a Generic Environmental Impact Statement; the governor described that as about a year, but the order sets no fixed end date.¹ It exempts data centers used primarily for manufacturing, medical care, education or specified research, and it does not reach applications DEC had already found complete or permits issued by local governments.²¹ The order also directs the Department of Public Service, through Case 26-E-0045, to examine data center interconnection to the distribution network.²

In June 2026 the Legislature passed the Responsible Data Center Development Act (A11560/S10642), which the Senate approved 43–17 on June 4. It would set a one-year moratorium at a 20 MW threshold, have DEC prepare an environmental impact report within 18 months, require data centers of 5 MW or more to source one-third of their electricity from renewables from 2030, two-thirds from 2035 and 90% from 2040, and require separate utility rate classes for large data centers by June 1, 2030.³ As of early October 2026, no signature or veto had been reported; earlier reporting said the bill had not yet been delivered to the governor, who has 10 days to act once it is.⁴ Check its status before relying on either threshold.

Our guides to data center moratoriums and state data center legislation trends put New York’s approach in context.

New York’s grid is run by NYISO, and large loads connect through a regulated delivery utility. The queue numbers show the pressure: 29 large-load projects totaling about 6,055 MW in July 2025, then 51 projects totaling 12,670 MW by May 2026.¹² NYISO’s planning forecast assumes about 2,880 MW of that demand is integrated by 2040, so most queued load is treated as uncertain.⁸ NYISO’s 2026 Power Trends report says reliability margins are tightening and the system is more sensitive to uncertainty.¹¹

On February 12, 2026, the Public Service Commission opened Case 26-E-0045 on interconnection reforms for large loads, growing out of the governor’s Energize NY Development initiative. The order states that projects driving significant system demand should pay their fair share of associated costs while protecting other ratepayers and reliability, and it applies a “beneficiary pays” principle to grid upgrades that directly benefit a new load. It also cites concerns that speculative projects could leave existing customers paying for infrastructure that is never used.⁷

For a site, that means expecting to fund upgrades, post security and show a credible ramp schedule. Our guides to large-load tariffs and transmission upgrades and cost allocation explain the terms that usually follow.

The New York Power Authority (NYPA) owns the state’s largest hydro plants. The 2,500 MW Robert Moses Niagara plant at Lewiston produces the largest share of New York’s hydropower.⁵ NYPA does not sell this power on demand: it allocates it through economic development programs tied to jobs and investment commitments.

ReCharge NY offers contracts of up to seven years. Half of its power, 455 MW, comes from NYPA’s Niagara and St. Lawrence-FDR plants, and the other 455 MW is lower-cost power NYPA buys on the wholesale market.⁹ Data centers have received allocations: NYPA’s approved list includes 2,850 kW for 365 Data Centers in Commack, on Long Island.¹⁰ Allocations of this size cover a small facility or part of a load, not a hyperscale campus. Western New York has a longer history: Yahoo’s Lockport data center was allocated 10 MW of NYPA power during its initial phase, with a further 5 MW planned for a second phase.¹³

Treat hydropower as a possible cost and sustainability benefit to apply for, not as the core supply plan for a large campus. Our guide to hydropower and data center siting compares New York with the Pacific Northwest.

The most advanced AI campus in the state is TeraWulf’s Lake Mariner site, built on a former coal plant property and originally developed for cryptocurrency mining. In August 2025 TeraWulf signed two 10-year colocation agreements with Fluidstack for about 200 MW of critical IT load, with Google providing a $1.8 billion lease backstop.¹⁴ Days later Fluidstack took a further building with more than 160 MW of IT load, bringing contracted capacity to about 360 MW, with operations expected in late 2026.⁶ The path from mining site to AI campus is covered in our guide to converting bitcoin mining sites.

At the Science and Technology Advanced Manufacturing Park (STAMP) in Genesee County, Stream Data Centers withdrew a smaller application in September 2025 and refiled for a larger facility, expanding the site from 59 to 90 acres; a revised application raised planned investment to $19.46 billion.¹⁵ The Sierra Club describes the newer plan as a 500 MW, 2.2 million square foot complex and reports a requested incentive package of about $801 million through the county development agency. Opponents, including allies of the neighboring Tonawanda Seneca Nation, have raised water, wastewater and environmental review concerns.¹⁶ In New York, those incentives usually take the form of an industrial development agency PILOT and sales tax abatements, so the agency’s SEQRA review becomes a central part of the schedule.

The lesson for landowners is that sites with existing high-voltage infrastructure, such as retired generating stations, move fastest. See our guide to repurposing industrial and power plant sites.

1. 01Determine whether the project needs discretionary DEC permits, such as air permits for generators, and whether its peak demand crosses the 50 MW threshold in Executive Order 62 or the 20 MW threshold in the pending bill.¹³
2. 02Confirm the delivery utility and utility service territory, then ask what Case 26-E-0045 may require in upgrade funding and security.⁷
3. 03Place the load realistically against NYISO’s queue: many projects are ahead, and NYISO’s planning forecast assumes most will not connect soon.⁸
4. 04Check eligibility for NYPA allocations and how jobs and investment commitments are measured.⁹
5. 05Plan for SEQRA review and an industrial development agency incentive process, with public hearings and organized opposition likely for large projects.¹⁶
6. 06Design for water and wastewater from the start; air-cooled or closed-loop designs reduce one of the most common objections.

Compare New York with neighboring Pennsylvania, which sits in PJM. If you want an independent read on a specific tract, you can get a site reviewed.