New York to Impose First Statewide Moratorium on Large AI Data Centers

New York will halt the construction of new large-scale data centers for up to one year while the state develops regulations to protect the environment and power grid from the energy-intensive facilities that support artificial intelligence (AI), Anthony Izaguirre reported for The Associated Press (AP).

According to the governor's office, the executive order will suspend state permitting for new large data centers while regulators develop operating standards. (Photo: Equinix)

Gov. Kathy Hochul is expected to sign an executive order imposing what would be the nation's first statewide moratorium on hyperscale data centers.

These facilities house thousands of computer servers and require significant amounts of electricity and water for cooling.

"As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it's my responsibility to take action and lead," Hochul, a Democrat, said in a statement.

According to the governor's office, the executive order will suspend state permitting for new large data centers while regulators develop standards covering environmental impacts, energy demand, water consumption, and other related issues.

Technology companies and industry advocates argue that restricting data center construction could slow job creation, discourage investment, and weaken the United States' competitiveness against China in the rapidly expanding AI sector.

Earlier this year, Maine considered adopting a similar moratorium.

However, Democratic Gov. Janet Mills vetoed the proposal because it would have blocked a planned data center project in a community struggling economically after the closure of a local paper mill.