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New York Governor Kathy Hochul He signed an executive order on Tuesday to stop issuing new construction permits for large-scale data centers in the state, the first statewide freeze on new construction of artificial intelligence data centers.
The moratorium could last up to one year with the state expected to use that time to “build a regulatory framework that protects taxpayers, the environment, the energy grid and communities across the state.”
“As data center development threatens to raise utility bills, deplete our natural resources and create uncertainty for New Yorkers, it is my responsibility to take action and lead,” said Governor Hochul. He said in a press release. “New York will lead the way in creating the nation’s strongest standards for data center development.”
Other countries may soon follow suit. Lawmakers in 15 states It has proposed a temporary or permanent moratorium on data center construction, though several have failed to gain legislative support. In Maine, the legislature passed a moratorium, but that was it Gov. Janet Mills vetoed it.
The executive order specifically targets Hyperscale data centerswhich is used to train artificial intelligence or inference. While traditional data centers may contain hundreds of servers, hyperscale data centers can host tens of thousands of servers and are responsible for disproportionate use of Local water and Electricity resources.
Hochul directs New York’s Department of Public Service “to consider establishing a New York Network Acceleration Fund to require data centers to invest in the state’s aging network infrastructure and energy needs” and is seeking additional legislation to eliminate sales tax exemptions for large-scale data centers in the state.
A representative of Governor Hochul’s press office did not immediately respond to a request for comment.
Existing data centers are not affected
Hochul’s one-year ruling applies to new, high-volume data centers, but construction will continue on AI data centers that were previously issued valid permits. There are also exceptions for certain research and educational facilities that use less energy, According to Politico.
There are currently 133 data centers in operation New Yorkwith New York City and Buffalo They serve as particularly large hotspots for facility construction.
To put that number in perspective, other countries love Virginia Texas has built hundreds more data centers than New York and accounts for nearly a quarter of the AI data center infrastructure in the United States.
The tens of thousands of servers needed for AI data centers suck up local natural resources and pollute the environment.
Americans widely reject the construction of data centers
There are already serious concerns about the proliferation of large-scale data centers across the country.
Reports claim related to data centers in Virginia Tens of thousands of fossil fuel generators on site can be held responsible for Tens of millions of dollars in annual health damage. Alarming images of deep black smog emanating from these data centers It made headlines recently During the heat wave that exhausted the state’s electricity grid.
These highly publicized concerns are one reason why people are protesting the construction of data centers near their homes. A Siena Research Institute poll (PDF) Found that most New York State residents support Hochul’s one-year moratorium.
“Technology should make our lives better, not pollute our water, strain our power grid, or raise our utility bills,” New York State Senator Christine Gonzalez He said in a New York news release. “I’ve heard from New Yorkers across our state who are concerned about what the rise of large data centers could mean for their communities.”
New York’s numbers reflect a broader nationwide reality: Regardless of political affiliation, most people don’t want data centers in their backyard. A Recent Gallup Poll It found that nearly 71% of Americans oppose building data centers in their area. More US residents said they opposed the construction of new data centers in their area From opposition to new nuclear power plants close.
While many state governments have been reluctant to draft legislation prohibiting the construction of AI data centers – or have done so He explicitly objected to the proposed moratorium – Local communities across the country They were mobilized to drive out server farms.
While New York’s executive order is an important win for data center opponents, the odds are still stacked against them. President Donald Trump has thrown his weight behind the AI industry with the goal of removing so-called “onerous regulation” to advance the largest AI companies.
In December, Trump He issued an executive order Trying to limit state-by-state regulations and provide a single federal framework for AI companies. The president has threatened to withhold broadband funding from states that insist on stricter regulations.
While several deadlines under this Executive Order It has already passed Without action by the Trump administration, the threat of federal opposition continues to loom over state governments considering moratoriums like the one in New York.
