New York Bans Data Centers for One Year

Governor Kathy Hochul ordered an immediate one-year halt on new hyperscale data center construction, citing the need to assess their strain on New York’s power grid, water supplies, and local communities.

The moratorium is the first statewide ban of its kind in the United States and comes amid growing backlash against the energy demands of artificial intelligence infrastructure.

Hochul said she will also pursue legislation to ensure tech companies pay their fair share of energy costs.

The decision was praised by environmental groups but drew criticism from the tech industry, which warns it could slow AI innovation.