The AI boom has run headlong into the limits of the power system. By introducing a one-year freeze on new hyperscale data facilities, New York has become the first US state to formally halt development of data centres using 50MW of power or more for up to one year.
The order was signed by New York Governor Kathy Hochul on 14 July, with the aim of creating a more comprehensive environmental regulatory framework.
Although the moratorium applies across all commercial data storage facilities of this scale, it was driven largely by the extraordinary electricity demand created by the generative AI surge.
“We’re in the midst of one of the most significant economic upheavals in generations… perhaps ever,” Kathy says.
“These hyperscale AI data centres consume enormous amounts of power, truly threatening to outpace our grid’s capacity. They drive up costs for local ratepayers and I refuse to let those costs get passed down to New Yorkers.”
