New York will temporarily halt the construction of new large data centers, enacting the country's first statewide moratorium on the facilities that power artificial intelligence and require significant energy and water resources. The executive order, set to be signed by Gov. Kathy Hochul, will pause state permitting for up to one year.
The measure directs state regulators to establish new standards addressing the environmental impacts, energy demand, and water usage associated with these data centers. Hochul stated that the action is necessary to address concerns about rising utility bills, depletion of natural resources, and uncertainty for New Yorkers.
Supporters of data centers argue that moratoriums could hinder job growth and impact the nation's competitiveness in the burgeoning AI industry. Tech companies and other proponents have expressed concerns that such measures could cede leadership in AI development to other countries, such as China.
While other states have considered or proposed moratoriums, New York's action is the first statewide ban. Maine's governor previously vetoed a similar measure, and some counties and municipalities have implemented their own temporary bans.
The decision also carries political implications for Hochul's reelection campaign and upcoming congressional races, as it addresses consumer concerns over energy costs. This move follows the governor's earlier adjustments to the state's greenhouse gas reduction goals, citing energy affordability.
New York's Republican gubernatorial opponent, Nassau County Executive Bruce Blakeman, has opposed the statewide moratorium, advocating for local governments to negotiate directly with tech companies. The state Legislature had previously approved a moratorium bill, but the governor's office indicated it required further refinement, leading to the adoption of an executive order for immediate effect.