New York Governor Kathy Hochul is set to sign a statewide moratorium on the construction of "hyperscale" data centers, which typically house thousands of servers. This move establishes the first such pause on these facilities at the state level in the United States.

The moratorium targets hyperscale data centers, a classification for facilities containing a substantial number of servers. The specifics of the order and its effective date were not immediately available, but the announcement signifies a significant policy shift regarding the rapid expansion of digital infrastructure in the state.

Data centers have become increasingly vital for supporting cloud computing, artificial intelligence, and the general internet infrastructure. However, their construction and operation have drawn scrutiny due to concerns about energy consumption and environmental impact. This moratorium is expected to address some of these concerns by pausing new development while the state evaluates its policies and capacity to handle the growing demand.