Data centers are becoming a hot-button issue, springing up around the country.
But not in New York, at least not for the next year.
New York became the first U.S. state on Tuesday to halt construction of large new data centers. Reuters reported the state has placed a one-year moratorium on their construction amid worries that the facilities driving the artificial-intelligence boom are raising power costs, straining water supplies and burdening local communities.
The moratorium puts New York right out front of what is becoming a growing national debate over managing the infrastructure needed to support artificial intelligence. While technology companies are racing to build new data centers, lawmakers and regulators in dozens of states are weighing measures to limit their effect on electricity grids, utility bills and local communities.
“As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it’s my responsibility to take action and lead,” said Gov. KathyHochul, who Reuters reported said she will also “pursue legislation to repeal sales tax exemptions for large data centers.”
The construction ban will apply to data centers that use 50 megawatts or more of power, officials in the governor’s office told Reuters.
During the moratorium, the state’s Department of Environmental Conservation will not issue any discretionary permits not already deemed complete, the governor’s office said.
Instead, Hochul directed state officials to develop a Generic Environmental Impact Statement (GEIS) to ensure that new data centers coming online are being held to “consistent standards,” as well as examine the potential environmental impacts of the construction and operation of data centers in the state.
The ban will be lifted once the state finalizes those standards, according to Hochul’s office.
