New York has enacted a moratorium on the construction of large data centers for up to one year, as announced by Governor Kathy Hochul on Tuesday. The executive order aims to establish regulations that address environmental impacts and energy demands associated with hyperscale data centers, which require significant energy and water resources. This decision is part of a broader discussion on regulating the artificial intelligence industry amid concerns regarding rising electric bills and environmental risks. Hochul stated, "The bottom line is that progress shouldn’t arrive with a higher utility bill, deleted water supply or noise pollution."
The moratorium follows a similar proposal in Maine earlier this year, which was vetoed by Governor Janet Mills. While moratoriums have been suggested in various states, few have progressed. New York's order halts state permitting for new large data centers and directs regulators to develop standards related to energy and water usage. This move also has implications for Hochul's reelection campaign and the upcoming congressional races, as it addresses affordability concerns linked to high utility costs.
Republican gubernatorial candidate Bruce Blakeman has expressed opposition to the moratorium, advocating for local governments to negotiate directly with tech companies. The state Legislature had previously approved a moratorium bill, but Hochul's office deemed it complex and opted for an immediate executive order instead. Senator Kristen Gonzalez, who sponsored the legislation, supported the governor's stance, asserting that if tech companies wish to operate in New York, it should be under the state's terms.