New York becomes first state to impose data-center moratorium
New York has enacted the nation's first-ever statewide moratorium on hyperscale data centers for one year. Governor Kathy Hochul cited concerns over rising utility bills, depleted water supplies, and noise pollution as reasons for the action. She also plans to pursue legislation to repeal sales-tax exemptions for large data centers.
New York has become the first U.S. state to impose a statewide moratorium on the construction of large new data centers. Governor Kathy Hochul announced the one-year halt, citing growing concerns that these facilities, which are driving the artificial intelligence boom, are contributing to higher power costs, straining water supplies, and causing noise pollution in local communities.
In her statement, Governor Hochul emphasized the need to address these challenges, stating that progress should not come at the expense of residents' utility bills or environmental resources. In addition to the moratorium, the Governor intends to pursue legislation aimed at repealing sales-tax exemptions that currently benefit large data centers.