New York imposes first US moratorium on large-scale data centre construction
The measure makes New York the first state to enact a statewide ban, as officials seek to protect the electrical grid and local communities from the rapid expansion of artificial intelligence infrastructure.
New York Governor Kathy Hochul has signed an executive order imposing a one-year moratorium on the construction of data centres consuming 50 megawatts or more. Effective immediately, the measure pauses the issuance of environmental permits to allow state officials time to develop regulations designed to protect the electrical grid, the environment, and local communities. The order does not affect projects that already hold the required permits.
This action makes New York the first US state to implement such a ban, joining a growing number of states and cities considering similar restrictions. The decision comes amid public opposition regarding rising utility costs and resource depletion driven by the surge in data centre development. This expansion is largely fueled by accelerating demand for artificial intelligence, which has raised concerns regarding energy costs, environmental effects, and government subsidies.
Hochul stated at a press conference that New York would lead the way in creating the strongest standards in the nation for data centre development. She emphasised that the goal was to ensure that when companies succeed because of New York, New Yorkers succeed too. The governor noted that as data centre development threatens to hike up utility bills and deplete natural resources, it was her responsibility to take action ahead of local elections.
The executive order is separate from the Responsible Data Center Development Act, which was recently passed by the state legislature but has not yet been signed by Hochul. That bill would also ban data centre permits for a year, while requiring energy efficiency goals and specific benefits for host communities. Hochul has previously expressed support for AI as a potential research tool and economic booster, and she is currently considering whether to sign the legislation.
New York’s move follows similar legislative efforts elsewhere, though outcomes have varied. Maine’s state legislature passed a moratorium recently, but it was vetoed by Governor Janet Mills. Other states with legislation advancing include Washington, Wisconsin, Illinois, Pennsylvania, New Hampshire, Connecticut, and South Carolina. Local bans have also been enacted in cities such as Seattle. Hochul, initially a pro-business moderate who believed data centre bans should be left to cities and communities, has shifted to state-level action following public pressure.
