New York will become the first US state to impose a moratorium on new data centers today, a sign of the growing blowback to the AI boom.
New York Gov. Kathy Hochul, a centrist Democrat, is signing an executive order pausing permitting for hyperscaler data centers for a year, giving the state time to establish a regulatory framework to soften the impact on utility bills, the energy grid, and the environment.
“New York will lead the way in creating the strongest standards in the nation for data center development, ensuring that when companies succeed because of New York, New Yorkers succeed too,” Hochul said.
Data centers are deeply unpopular across both parties, and politicians have made them a punching bag.
The news won’t land well with big AI companies hoping for a public change of heart over their crucial infrastructure.