New York Bans Data Centers for One Year

New York Governor Kathy Hochul signed an executive order imposing a one-year moratorium on the construction of large-scale data centers, making New York the first U.S. state to halt the power-hungry facilities that are driving the artificial intelligence boom.

The pause is designed to allow time to study the environmental and electrical grid impacts of data centers, while also addressing rising utility costs that are being passed on to residents.

The move comes as a separate report revealed that data centers are expected to add $6.3 billion in additional power charges to consumers and businesses across 13 states.

The moratorium reflects growing concerns about the energy demands of AI infrastructure, with GOP governors in Montana, Wyoming, and Missouri simultaneously endorsing a White House effort to control data centers' effect on energy prices.