New York becomes first state to impose one-year pause on new AI datacenters

New York Governor Kathy Hochul has enacted a one-year statewide moratorium on new hyperscale data centers, making New York the first US state to implement such a pause. The executive order, issued on Tuesday, specifically targets facilities with an electrical capacity exceeding 50 megawatts, aiming to address public concerns regarding escalating utility bills, depletion of natural resources, and broader environmental impacts.

Under the new directive, the state permitting process for these large-scale data centers will be halted for one year. During this period, state regulators are tasked with developing comprehensive standards focusing on environmental impact assessments, energy demand management, and water usage protocols. State Senator Kristen Gonzalez, who had previously authored a bill for a similar moratorium that awaited the governor's approval, welcomed Hochul's executive order, emphasizing its role in protecting New Yorkers and ensuring responsible development.

The move comes amidst growing national sentiment against data center expansion, with polls indicating significant public opposition to projects near residential areas due to perceived negative effects on energy prices and local environments. While Maine’s legislature approved a moratorium, its governor vetoed it. A small city in southern California and Seattle have also enacted local construction pauses. A recent Siena Research Institute poll found 46% of New Yorkers support the statewide moratorium.