New York Becomes First State To Enact One Year Ban On New Data Centers

The blowback against data centers escalated this morning, when New York became first state in the nation to enact a moratorium on data centers, pausing construction on new facilities for one year.

An executive order by Gov. Kathy Hochul bans state lawmakers from approving environmental permits for hyperscale data centers. Hochul said Tuesday the pause will give lawmakers time to create a framework to protect residents and the environment. 

"Massive data centers are being built across our state and our country. The scale and speed of this development has put unprecedented demand on energy and water resources, and threatens to drive up utility costs. Before it goes any further, I need safeguards in place to protect New Yorkers," Hochul said in a social media post. 

AI data centers, which contain thousands of servers and typically use 50 or more megawatts of power to operate, have been blamed for everything from noise pollution to sending regional electricity prices soaring. They also require a steady supply of water to keep cool. 

Hochul said the state still welcomes AI investments and businesses, and looks forward to helping them grow and thrive. 

"But when you benefit from the talent and energy of New York, we expect you to protect our resources and give back to our communities," Hochul said. 

New York will lead in responsible innovation while protecting families and communities.

Today, I’m signing a first-in-the-nation Exe