New York has temporarily banned hyperscale data centres for the next 12 months in order to prevent soaring utility bills and protect the environment.
Governor Kathy Hochul signed an Executive Order to create the nation’s first moratorium on data centres, which includes temporarily pausing state environmental permits, effectively blocking construction.
The proliferation of AI in recent years has seen a boom in data centre construction globally. But their huge consumption of energy and water can lead to rapidly rising household bills for nearby consumers. Not all upcoming data centres will be impacted, just those considered “hyperscale” which are defined as facilities requiring 50 megawatts or more of electricity.
“New York has always been at the forefront of innovation and change but we’ve also always guaranteed that New Yorkers benefit,” Hochul said. “As data centre development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it...