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World
Briefing July 14: New York Blocks Mega Data Centers, Trump Eyes Strait of Hormuz
World Desk · · 30s summary · 5 min read
The essentials
On July 14, 2026, New York became the first U.S. state to impose a one-year moratorium on environmental permits for hyperscale data centers exceeding 50 MW, via an executive order signed by Democratic Governor Kathy Hochul. Trump declared the United States would collect tolls and impose a blockade in the Strait of Hormuz. A Federal Reserve official suggested a possible rate hike if inflation exceeds 2%; the July 14 CPI report was deemed crucial for the FOMC decision. The FTC filed suit to block Henkel's $725 million acquisition of Liquid Nails. In Australia, 391,000 young people under 25 serve as caregivers for a family member.
- New York imposes the first U.S. moratorium on giant data centers, effective for one year.
- Trump wants to collect tolls and impose a blockade in the Strait of Hormuz.
- The Fed could raise rates if inflation stays well above 2%; July rate hike odds hit 45%.
- The FTC sues to block Henkel's $725 million acquisition of Liquid Nails.
- 391,000 young Australians aged under 25 serve as caregivers for a family member.
Data Centers: New York Leads the Way
On July 14, 2026, New York became the first U.S. state to impose a one-year moratorium on new environmental permits for hyperscale data centers—large-scale data centers capable of rapidly adapting to significant resource demands—exceeding 50 MW. Democratic Governor Kathy Hochul signed the executive order. A regulatory authority will develop new standards on water, air, and energy consumption.
Hospitals and data centers below 50 MW are excluded from the moratorium. Hochul also announced her intention to seek, in 2027, the elimination of sales tax exemptions that large data centers currently enjoy in the state.
Geopolitics: Trump Eyes the Strait of Hormuz
Trump declared that the United States would collect tolls and impose a blockade in the Strait of Hormuz—a critical maritime passage through the Persian Gulf, situated between Iran to the north and the United Arab Emirates and Oman to the south, serving as a crucial transit point for global oil exports.
Tensions over the strait and Iran pose an upside risk to oil prices, a factor likely to sustain inflation and complicate the Federal Reserve's decision on interest rates.
The Fed Faces Inflation
Christopher Waller, a member of the Federal Reserve's Board of Governors, stated on July 13, 2026, in New York that the central bank could raise rates if inflation remains significantly above 2%. His remarks caused market-implied probability of a July rate hike to rise from 35% to 45%.
The July 14 Consumer Price Index (CPI) report was deemed crucial for the FOMC—the Federal Open Market Committee, the arm of the Federal Reserve responsible for open market operations and the primary tool of U.S. monetary policy—decision. Kevin Warsh, the Fed's new chair, was testifying before Congress the same day.
Before Waller35
After Waller45
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