tech
New York State halts construction of all new data centers
New York has become the first state to temporarily halt approval of large data centers, as Gov. Kathy Hochul argues the AI-driven building boom shouldn’t come at the expense of higher electricity costs, water supplies, or local control.
TL;DR
- New York is the first state to temporarily halt approvals for new data center construction permits for projects 50 megawatts or larger.
- Governor Kathy Hochul cited concerns about AI's impact, increased utility bills, water supply, and noise pollution as reasons for the moratorium.
- The moratorium will last until the state finalizes an environmental review process for data centers, expected to take about a year.
- The state is considering requiring data centers to contribute to a fund for the electrical grid and preventing tax benefits for hyperscale data centers.
- Public sentiment regarding data centers has soured due to their increasing size and strain on resources, with many concerned about rising electricity prices.
- New York's action follows legislative proposals for construction pauses and comes as other states have considered or vetoed similar measures.
- The executive order could potentially set up a clash with the federal government's support for data center development.