New York became the first state to halt data center construction after Governor Kathy Hochul today signed an executive order temporarily prohibiting the state from approving new permits for large projects.

Hochul’s order applies to data centers of 50 megawatts or more, which could affect more than a dozen projects. The state Department of Environmental Conservation will not issue any permits that have not yet been completed.

While concerns about resources have fueled some of the backlash, a broader concern about AI has also been behind much of it. A recent Pew Research report found that only 10% of Americans were more excited than concerned about using AI in daily life, and only 23% felt the technology would have a positive impact on the way people do their jobs. Less than a quarter of the general public believes AI will give the economy a boost, and less than a third trusted the government to regulate the technology responsibly.

“Progress should not come with a higher utility bill, an eliminated water supply or noise pollution,” Hochul said at a news conference in Brooklyn. “These data centers can only be built, should only be built in places that require them. Therefore, they will never be exempt from local zoning and local approvals.”

The moratorium will be lifted once the state completes an environmental review process for data centers, which Hochul expects to last about a year. Hochul’s office is also considering requiring data centers to pay into a fund that would support the state’s power grid, and would like to prevent hyperscale data centers from receiving tax benefits.

Hochul’s executive order comes as stricter measures move through the New York legislature. Last month, the legislature introduced a bill that would suspend construction of data centers larger than 20 megawatts for a year, while another still in committee would institute a three-year moratorium.

The average data center built in recent years has been less than 100 megawatts, but those in development are expected to be much larger as AI increases computing demands. Through 2030, nearly a quarter of new data centers will exceed 500 megawatts, according to BloombergNEF, driven by growing investment in AI.

The idea of ​​a data center moratorium has been debated at the state and federal level, but New York is the first to implement it. In December, more than 230 organizations called for a nationwide pause on new data centers. Vermont Sen. Bernie Sanders also proposed a nationwide moratorium, though it hasn’t received much traction. Most recently, the Maine legislature passed a bill that would have halted construction of new data centers until Nov. 1, 2027, but Gov. Janet Mills vetoed it.

Just a few years ago, data centers were sought after by states eager to secure new development projects, but recently, public opinion on data centers has soured as new projects have grown in size. The scale and pace at which they are being built have begun to strain the electrical grid, as well as regional resources such as water and farmland. Two-thirds of respondents in a recent survey said they were worried about data centers driving up electricity prices. Another survey found that people would rather have an Amazon warehouse in their backyard than a data center.

Hochul’s order could be setting up a clash with the Trump administration, which has so far supported data center development. Last month, the Federal Energy Regulatory Commission, led by a Trump appointee, asked network operators to develop special fast lanes to speed up data center interconnections.