New York enacts statewide moratorium on new AI data centers due to energy, water concerns
New York is set to become the first US state to enact a statewide moratorium on new hyperscale AI data centers. Governor Kathy Hochul is expected to sign an executive order, immediately suspending state permitting for up to one year. This pause is intended to allow regulators time to establish environmental and energy standards amid concerns over massive electricity and water consumption.
New York is poised to become the first U.S. state to temporarily suspend the development of new large-scale artificial intelligence (AI) data centers. Governor Kathy Hochul is expected to sign an executive order introducing a statewide moratorium on new hyperscale data centers for up to one year.
The executive order comes amid growing concerns over the significant electricity and water consumption of these facilities, which house thousands of servers. State officials have expressed worries that the rapid expansion of AI data centers could strain New York's power grid, increase electricity costs for consumers, and deplete local water resources used for cooling.
During the moratorium, the state will immediately suspend permitting for new hyperscale data center projects. State agencies will be tasked with developing comprehensive regulations covering energy consumption, environmental impact, water usage, and grid reliability standards. These new operational guidelines must be established before any additional data center projects are permitted to proceed in the state.