A data center in Virginia. [Reuters]
A data center in Virginia. [Reuters]

New York has become the first of the 50 US states to introduce a policy pausing the construction of large data centers.

Gov. Kathy Hochul signed an executive order to that effect Tuesday, according to a statement from her office.

Under the order, New York will temporarily suspend environmental permits for up to one year for large data centers that consume 50 MW or more of electricity. New York is the first state in the country to impose such a moratorium on large data center construction.

During the moratorium, the state plans to develop measures to protect electricity consumers and assess the environmental impact of data center development.

"It is my responsibility to act and lead when data center development poses a threat of rising utility bills, depletion of natural resources and increased uncertainty for New Yorkers," Hochul said in the statement.

As AI-related data center projects proliferate across the United States, local residents have pushed back against the facilities, citing their heavy consumption of water and electricity and the resulting increases in local power bills.

The executive order does not affect data centers already built and in operation.

According to data analytics firm Data Center Map, 133 data centers are currently operating in New York state.


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