New York imposes moratorium on construction of large data centres
New York has imposed a one-year moratorium on the construction of large data centers, defined as those using 50 megawatts or more of power. Governor Kathy Hochul cited concerns about rising power costs, strained water supplies, and community burdens. During this period, the Department of Environmental Conservation will not issue discretionary permits, and state officials will develop environmental impact standards.
New York Governor Kathy Hochul enacted a one-year moratorium on the construction of large new data centers, effective Tuesday, making it the first U.S. state to implement such a measure. The ban targets facilities consuming 50 megawatts or more of power, driven by growing concerns that the infrastructure supporting the artificial intelligence boom is escalating power costs, depleting water supplies, and imposing burdens on local communities. Governor Hochul stated her responsibility to address these issues, noting that she will also seek legislation to repeal sales tax exemptions for large data centers.
During the moratorium, the New York Department of Environmental Conservation will cease issuing discretionary permits not already finalized. Governor Hochul has directed state officials to develop a Generic Environmental Impact Statement (GEIS) to ensure consistent standards for new data centers and assess their potential environmental impacts. The ban is slated to be lifted once these new state standards are finalized. This action places New York at the forefront of a national debate on managing AI infrastructure, with other states also considering measures to limit data centers' effects on electricity grids and utility bills. New York faces significant power demand, with over 12 gigawatts of large energy-consuming loads, including data centers, awaiting connection to its grid, contributing to its status as the eighth-most expensive state for residential electricity.