While Congress Waits, New York Tightens the Reins on Data Centers and Chatbots
New York Governor Kathy Hochul has issued a one-year moratorium on new data center developments to establish standards for infrastructure, protect communities and the environment, and ensure local benefits. The pause will also study environmental impacts like water usage and energy demand. This executive order is part of New York's broader efforts to regulate Big Tech, including a recently passed bill on AI chatbots for minors.
Governor Kathy Hochul of New York issued an executive order establishing the nation's first one-year moratorium on new data center developments. This pause aims to create strong infrastructure build-out standards and regulatory frameworks that benefit communities, consumers, and the environment. During this period, the state will provide guidance to localities on negotiating benefits, such as infrastructure improvements and workforce development, from large-scale data center deals. Environmental concerns, including water consumption and energy demand, will also be assessed.
The executive order reflects growing public opposition to data centers, with a recent Gallup poll indicating 71% of Americans oppose local data center construction due to resource and quality of life worries. This sentiment has influenced political figures, with Texas Governor Greg Abbott calling for a block on new data centers in rural East Texas, and a North Carolina congressional candidate supporting a short-term moratorium. Former President Donald Trump, however, has publicly criticized New York's moratorium, emphasizing the economic benefits and job creation potential of data centers.
Separately, New York's legislature unanimously passed the "Kids Chatbot Safety Act" in June, banning features deemed unsafe for minors on AI chatbots like Anthropic's Claude and OpenAI's ChatGPT. This bill, sponsored by state Sen. Kristen Gonzalez and Assemblymember Alex Bores, aims to shift accountability to platform designers, prohibiting chatbots from simulating intimate relationships or promoting self-harm, with a $25,000 fine per violation. Suzanne Bernstein of the Electronic Privacy Information Center (EPIC) highlighted the importance of platforms mitigating risks.