New York Announces Moratorium on Construction of Large Data Centers

New York state has become the first in the U.S. to temporarily halt the construction of large data centers amid the rapid development of AI technologies. A decree signed by Governor Kathy Hochul restricts the issuance of permits for new projects to conserve energy resources and protect the environment. This was reported by Techcrunch.com reports .

This decision affects large projects with a capacity of 50 MW or more and is expected to impact over a dozen ongoing construction processes. According to Ixbt.com, the New York Department of Environmental Conservation has halted permit issuance for all pending projects. The moratorium will remain in effect for approximately one year, until the environmental impact of data centers in the state is fully assessed.

Resource Scarcity and Public Concern

At a press conference in Brooklyn, Governor Kathy Hochul emphasized that technological progress should not come at the cost of higher utility bills, depleted water reserves, or noise pollution for residents. "Such centers should only be built in areas that are prepared to host them and where the local community has given its consent," she added. The Governor is also considering forcing data centers to pay into a special fund to support the state's power grid and eliminating tax incentives provided to them.

The race in the field of AI has sharply increased the demand for computing power. According to BloombergNEF analysis, by 2030, nearly a quarter of newly built data centers will have a capacity exceeding 500 MW. This places immense pressure not only on power grids but also on water resources required for cooling systems.

Public opinion has also shifted significantly in recent years. According to a study by the Pew Research Center, only 10% of Americans say they are more excited than concerned about AI technologies. Two-thirds of respondents noted they are worried that data centers will drive up electricity prices. Many even stated they would prefer an Amazon warehouse in their community over a data center.

Political Conflicts

This move by New York may clash with federal-level policy. Specifically, the Donald Trump administration has been supportive of data center development. Recently, the Federal Energy Regulatory Commission instructed operators to create "fast lanes" to accelerate the process of connecting such centers to the grid.

Nevertheless, state lawmakers are pushing for even stricter measures. The New York legislature is currently discussing bills that would pause projects over 20 MW for one year, or in some proposals, up to three years. Previously, the state of Maine passed similar legislation, but the governor vetoed it.

In conclusion, this moratorium in New York has brought the issue of balancing technological giants and environmental sustainability to the forefront globally. The infrastructure required for the development of AI is now under strict scrutiny, not only from an economic perspective but also from the standpoint of social and environmental responsibility.