New York enacts first US ban on large data center construction

New York has become the first U.S. state to implement a moratorium on the construction of new large data centers. Governor Kathy Hochul signed an executive order that pauses environmental permits for facilities consuming over 50 megawatts for up to a year. This action aims to allow state officials time to develop regulations addressing the impact of data centers on the electrical grid, environment, and local communities, particularly in light of increased demand driven by AI. While this executive order is in effect, a separate bill passed by the state legislature that could impose further restrictions is still under consideration. AI

IMPACT This moratorium could slow the build-out of AI infrastructure in New York, potentially impacting the availability and cost of compute resources.

RANK_REASON State-level regulatory action on a significant industry infrastructure component.

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• Kathy Hochul
• Maine
• New York
• New York State Department of Public Service
• data center
• Janet Mills
• The Washington Post

• policy
• infra

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