New York, a state without nearly any data centers, becomes first to ban their construction

New York blocked the construction of any new large data centers for up to a year on Tuesday while the state creates rules to protect the environment and the energy grid from power-hungry facilities that fuel artificial intelligence.

Gov. Kathy Hochul signed an executive order imposing the country’s first statewide moratorium on hyperscale data centers, which house thousands of computer servers and require massive amounts of energy and a steady supply of water to keep cool.

The move puts the state in the center of a national debate over how to regulate the AI industry, as concerns over rising electric bills and environmental risks collide with the need to stimulate local economies and foster the U.S. tech sector.

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