New York won’t build big data centres for a year
New York won’t build big data centres for a year
Publish Date: 2026-07-14 12:21:00
Source Domain: www.bnnbloomberg.ca
- New York Governor Kathy Hochul has signed an executive order imposing the country’s first statewide moratorium on the construction of large-scale data centers for at least a year.
- The moratorium aims to protect the environment and the state’s energy grid from the significant energy and water demands of data centers, which power AI facilities.
- The decision kicks off a debate regarding the regulation of the AI industry, with concerns about electric bills and environmental risks clashing with desires to boost local economies and maintain the U.S. tech sector leadership.
- Hochul emphasized that economic progress must not come at the cost of higher utility bills, depleted water supply, or noise pollution.
- The move draws criticism from President Donald Trump and tech companies, who argue that such regulations hinder job growth and cede tech leadership to China.
- While similar moratorium ideas have been proposed in numerous states, concrete actions have been limited; only local bans have been enacted.
- The executive order temporarily suspends the permitting of new large data centers while directing state regulators to establish comprehensive standards addressing environmental impacts, energy demand, water usage, among other factors.
- The moratorium also has political implications for Hochul’s re-election campaign and the state’s contested congressional races as Democrats seek to address the concerns over high utility costs.
- Hochul’s Republican opponent, Nassau County Executive Bruce Blakeman, opposes the moratorium, advocating for local governments to negotiate economic benefits directly with tech companies for data center projects.
