The US state of New York has imposed a halt on construction of newly proposed large data centres, reported Reuters.
The statewide moratorium will last one year and covers data centre projects requiring 50MW or more of power, according to officials from New York Governor Kathy Hochul’s office.
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This decision comes amid mounting concerns about the impact of data centres, which support AI and cloud computing, on local electricity prices, water supplies, and community resources.
The state’s move places it ahead in an ongoing national debate about how to balance rising technology infrastructure needs against environmental and social effects.
Hochul announced that the New York State Department of Environmental Conservation will not issue new discretionary permits for large data centres during the moratorium, except for applications already deemed complete.
She has also tasked state officials with drafting a Generic Environmental Impact Statement, aiming to establish “consistent standards” for future data centre development and study the environmental effects of both construction and ongoing operations.
The Governor said: “As data centre 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.”
She also stated her intention to seek repeal of sales tax exemptions currently in place for hyperscale data centres.
The ban will be lifted once state authorities finalise new standards for data centre development. A bill seeking to regulate facilities consuming more than 20MW of power has passed the state legislature, but has not yet reached the governor’s desk.
Hochul’s office described the bill as complex and indicated further discussions will be needed with lawmakers.
