New York on Tuesday became the first U.S. state to stop new large-scale data center construction, with the governor signing an executive order to pause permits for up to a year.
The moratorium, which takes effect immediately, applies to facilities with capacities of at least 50 megawatts (MW) – enough electricity to power tens of thousands of homes – and will give the state time to develop a regulation for the rapidly expanding sector, fired by growing demand for artificial intelligence.
Critics of data centers point to their high electricity consumption, which can strain local grids and inflate energy bills, as well as their heavy water use, noise generation and the relatively small number of jobs they create.
State governors and national politicians – largely welcoming of the technology sector and the investment it brings – are increasingly under political pressure from voters who do not want such facilities in their backyard.
"New York has always been at the forefront of innovation and change, but we've also always guaranteed that New Yorkers benefit," New York Gov. Kathy Hochul said.
