NEW YORK (AP) — No large data centers can be built in New York for up to a year as the state creates rules to protect the environment and its energy grid from the power-hungry facilities fueling artificial intelligence.Gov. Kathy Hochul signed an executive order Tuesday imposing the country’s first statewide moratorium on hyperscale data centers, which house thousands of computer servers and require massive amounts of energy and a steady supply of water to keep cool.The move pushes the state into a raging debate over how to regulate the AI industry, as concerns over rising electric bills and environmental risks collide with a desire to stimulate local economies and foster the U.S. tech sector.
“The bottom line is that progress shouldn’t arrive with a higher utility bill, deleted water supply or noise pollution, so we have no choice but to address these challenges created by these massive facilities,” Hochul said at a celebratory signing ceremony in Brooklyn.
New York Governor Kathy Hochul participates in a ribbon cutting ceremony at the new JPMorgan Chase offices in New York, Oct. 21, 2025. (AP Photo/Seth Wenig, File)
President Donald Trump has warned states not to slap regulations on the AI industry, echoing tech companies in arguing such moves hamper job growth and cede ground to China in a race to lead in the rapidly growing field. Earlier this year, Maine seemed poised to establish a similar moratorium. But the measure was vetoed by Democratic Gov. Janet Mills because it would have blocked a proposed data center in a town that has struggled after a mill closed.
