New York has become the first US state to impose a one-year moratorium on the construction of large new data centres, citing growing concerns over their impact on electricity supplies, water resources and local communities.
The ban applies to data centres requiring 50 megawatts or more of power and comes amid a nationwide debate over the infrastructure needed to support the rapid expansion of artificial intelligence.
Announcing the decision, Governor Kathy Hochul said the state must act to protect consumers and natural resources.
“As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it’s my responsibility to take action and lead,” Hochul said.
She also announced plans to pursue legislation repealing sales tax exemptions currently available to large data centres.
During the moratorium, the New York Department of Environmental Conservation will suspend the issuance of discretionary permits for new qualifying facilities unless applications have already been deemed complete.
The move places New York at the forefront of efforts to regulate the environmental and economic impact of AI-driven data centre expansion, as lawmakers across the United States consider similar measures.