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.

During this one-year pause, the state seeks to create a regulatory framework that will evaluate and address how data centers impact the environment, energy use and more.

New York Gov. Kathy Hochul’s order imposing a year-long moratorium on large new data centers in the state comes amid growing opposition to massive data center buildouts to power…