New York to impose the country’s first statewide moratorium on data centres
New York has enacted the country's first statewide moratorium on large data centers for up to a year. This executive order, signed by Gov. Kathy Hochul, aims to allow the state to develop regulations addressing the environmental and energy grid impacts of these power-intensive facilities. The move places New York at the center of a national debate on AI industry regulation.
New York Governor Kathy Hochul has signed an executive order imposing the country's first statewide moratorium on new large data centers for up to a year. The pause on state permitting for hyperscale data centers will allow state regulators to create standards addressing environmental impacts, energy demand, and water usage.
The decision puts New York in the national spotlight regarding the regulation of the artificial intelligence industry, balancing concerns over rising electric bills and environmental risks against economic stimulation and tech sector growth. While former President Donald Trump has warned against such regulations, arguing they hinder job growth, and Republican gubernatorial opponent Bruce Blakeman opposes a statewide ban, Governor Hochul asserted her responsibility to act.
Despite the state Legislature approving its own moratorium bill earlier this year, Governor Hochul opted for an executive order for immediate effect, citing the complexity of the legislative proposal. New York has not historically been a primary destination for the largest hyperscale data centers.