The state of New York became the first in the United States to impose a moratorium on the construction of new large data centers, a decision that opens a new chapter in the debate over the growth of the infrastructure necessary to drive artificial intelligence. The measure, pushed by Democratic Governor Kathy Hochul, suspends the issuance of new permits for this type of facility for one year while authorities develop a stricter regulatory and environmental framework.
The decision was announced through an executive order and affects data centers with an electricity consumption of 50 megawatts or more. During the moratorium period, the New York Department of Environmental Conservation will stop granting discretionary permits for new projects that have not yet completed their administrative procedures.
As Hochul explained, the goal is to comprehensively assess the impact that these facilities may have on the electrical grid, water supply, and the communities where they are installed. The socialist governor also ordered the preparation of a ''Generic Environmental Impact Study'' that will establish uniform criteria for future projects and determine under what conditions new investments can be developed once the suspension ends.
''I want New York to be first, but first in the right way,'' the Democrat stated while presenting the initiative. She also argued that the rapid growth of data centers threatens to raise electricity rates, consume significant natural resources, and create uncertainty for state residents, which is why she deemed it necessary to intervene before the sector's expansion continues.
The state administration also announced that it will promote a reform to eliminate sales tax exemptions currently enjoyed by large data centers, a measure that would increase costs for companies interested in establishing new operations in New York.
The moratorium comes in a context of growing regulation in various Democratic states due to the rapid development of artificial intelligence. Large tech companies are competing to build new complexes capable of housing thousands of servers, whose operation requires enormous amounts of electricity and water for cooling. At the same time, lawmakers and regulators are analyzing ways to reduce the impact that these facilities may have on energy infrastructure and consumers.
The debate had already begun in the state legislature. Last month, a bill aimed at imposing greater controls on data centers consuming more than 20 megawatts of electricity was approved, a threshold even broader than that contemplated in Hochul's executive order. However, the initiative has not yet reached the governor's desk for enactment, as negotiations about its scope continue.
The temporary ban prompted an immediate response from President Donald Trump, who harshly criticized the decision and claimed that New York risks losing multimillion-dollar investments related to artificial intelligence.
