NEW YORK — New York will block construction of new large data centers for up to a year so the state can create rules to protect the environment and energy grid from energy-intensive facilities that fuel artificial intelligence technology. Gov. Kathy Hochul will sign an executive order Tuesday morning imposing the nation’s first state moratorium
NEW YORK — New York will block construction of new large data centers for up to a year so the state can create rules to protect the environment and energy grid from energy-intensive facilities that fuel artificial intelligence technology.
Gov. Kathy Hochul will sign an executive order Tuesday morning imposing the nation’s first state moratorium on hyperscale data centers, which house thousands of computer servers and require enormous amounts of power and a constant supply of water to stay cool.
“As data center development threatens to increase utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it is my responsibility to step up and lead,” Hochul, a Democrat, said in a statement.
The order will suspend state permits for new large data centers and direct state regulators to create standards that address environmental impacts, energy demand, water use and other factors, the governor’s office said.
Tech companies and other backers have argued that moves to block data center construction hurt job growth in local communities and cede ground to China in a race to lead the fast-growing AI industry.
Earlier this year, Maine appeared poised to institute a similar moratorium. But the measure was vetoed by the state’s Democratic governor, Janet Mills, because it would have blocked a proposed data center in a city that has struggled after the closure of a local factory. Moratoriums have been proposed in at least a dozen states but have not gone very far, although some counties and municipalities have imposed their own temporary bans.
The decision in New York also has political significance for Hochul’s reelection campaign and the state’s tight congressional races this fall, as Democrats move to address affordability concerns over high utility bills and other pocketbook issues. This year, the governor softened New York’s ambitious goals to reduce greenhouse gases, citing rising energy costs for consumers.
Hochul’s Republican opponent in the gubernatorial race, Nassau County Executive Bruce Blakeman, opposes a statewide moratorium and says local governments should be allowed to reach deals with technology companies for data center projects that promise sufficient economic benefits.
The state Legislature passed its own moratorium bill this year, but Hochul’s office described the legislation as complex and said it needed additional work. Instead, the governor is opting for an executive order that would take effect immediately once signed.
New York, at this stage, has not been a destination for the largest hyperscale data centers.
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