New York State imposes a moratorium on new AI data centres

New York State is preparing to tighten the rules around building new data centres.

Data centres dedicated to AI draw enormous amounts of electricity, and they are springing up across the United States. In response, New York Governor Kathy Hochul has signed a moratorium that pauses the construction of new facilities within the state. The measure applies only to infrastructure that uses more than 50 megawatts.

A moratorium focused on energy use (over 50 megawatts)

The justification is straightforward: cutting energy consumption. New York State is currently in a transition period, moving away from older fossil-fuel power stations in favour of cleaner options. As a state that already consumes a great deal of electricity, adding more data centres could tip the balance and lead to shortages, Kathy Hochul warns:

“Faced with the threat that the growth of data centres poses to energy bills, the depletion of our natural resources and the uncertainty weighing on New Yorkers, it is my responsibility to act and to lead by example. New York will show the way by setting the strictest standards in the country for data centre development, so that companies’ success thanks to New York also becomes the success of New Yorkers.”

New York wants to rethink the role of data centres

The rapid spread of data centres is creating real headaches for many regions. Elsewhere in the United States, Maine also passed a moratorium on the issue, only for it to be blocked by the governor’s veto. Connecticut, South Carolina, Wisconsin and Pennsylvania are also looking at the question. In many places, welcoming these facilities is being reconsidered. They have even been banned in Seattle.

At the same time, data centres still have plenty of supporters. While they are undeniably power-hungry, they can also be a significant economic boost, drawing in investors and creating jobs.

White House concerns and the wider international energy constraint

New York’s moratorium should give the state government time to draft legislation that sets energy targets for any new centre. According to The Washington Post, the White House views these new rules very negatively: they would slow the development of American AI and could risk undermining the United States’ leadership in the field.

The United States is not alone in facing the energy challenge posed by data centres. Recently, Denmark has also moved to apply the brakes hard on the issue. There too, the problem is consumption: the country cannot technically connect new, extremely energy-intensive infrastructure to its grid.