New York State has temporarily halted construction of all new data centers larger than 50 megawatts, affecting over a dozen projects, according to Governor Kathy Hochul. The executive order, signed today, bars the state from approving new permits for large data centers, which could impact the electrical grid and regional resources. Hochul emphasized that data centers should only be built in areas that welcome them, subject to local zoning and approvals. The moratorium will remain in place until the state completes an environmental review process, expected to take about a year.
The decision reflects growing public concern about the environmental and economic impacts of large data centers. A Pew Research report found that only 10% of Americans were more excited than concerned about AI use in daily life, with less than a quarter believing AI would benefit their work. Less than a third of respondents felt the government would regulate AI responsibly. Hochul also mentioned the potential for data centers to increase electricity prices and strain water supplies, noting that two-thirds of respondents in a recent poll expressed concern about this.
The move comes as New York’s legislature considers more stringent measures, including a one-year pause for data centers over 20 megawatts. The average data center built recently has been smaller than 100 megawatts, but future projects are expected to be much larger due to AI demands. Through 2030, nearly a quarter of new data centers will exceed 500 megawatts, according to BloombergNEF. New York is the first state to implement a data center moratorium, following calls for a nationwide pause from over 230 organizations and proposals from figures like Vermont Sen. Bernie Sanders.
Source: techcrunch
