New York Halts Large Data Centers Being Built For A Year

New York Gov. Kathy Hochul will sign an executive order on Tuesday halting all new data-center construction in the state for up to a year, making it the first state to enforce a ban as backlash grows against AI infrastructure and its impact on the environment and on utility prices.Key factsCiting the governor’s office, several outlets reported the ban will target large data centers that require more than 50 megawatts of power to operate—including those still awaiting a permit.The pause is intended to allow the state to develop new environmental regulations for such data centers and examine their impact on the power grid, among other things.The ban will go into effect immediately, but will exclude hospitals, universities and other smaller data centers.The ban will remain in effect up to one year, but could end sooner if a regulatory framework is established earlier.The executive order also pre-empts legislation passed by the state’s lawmakers last month seeking a similar one-year ban on data center buildouts.Crucial quote"As data center 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," Hochul told the New York Times, who said she will also pursue legislation to repeal sales tax exemptions for large data centers.TangentThe executive order makes New York the first state to enact such a ban on data centers, even though bipartisan opposition to them has continued to grow among voters. Maine was the first state to pass legislation banning the construction of new data centers until November 2027. However, the state’s Democratic governor, Janet Mills, vetoed the legislation in April. Mills said she supports the moratorium, but the legislation did not include a special exemption for a single data center project that would have been built inside a now shuttered pulp and paper mill. Other top Democratic Governors, such as California’s Gavin Newsom, Michigan’s Gretchen Whitmer, and Pennsylvania’s Josh Shapiro, have appeared to support data center buildouts in their respective states.What does polling about data centers show?A Gallup survey published in May found that 71% of Americans are somewhat or strongly opposed to data centers in their communities, a higher share than the 53% who oppose nuclear energy plants. Opposition to data centers is stronger among Democrats, with 75% being somewhat or strongly against them. A majority of Republicans (63%) and Independents (74%) are also opposed to data center construction.