New York imposes first US ban on data centres

NEW YORK — New York will block the construction of any new large data centers for up to a year so the state can create rules to protect the environment and energy grid from the power-hungry facilities that fuel artificial intelligence technology.

Kathy Hochul is set to sign an executive order Tuesday morning 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.

Kathy Hochul will sign an executive order on Tuesday halting all new data-center construction in the state for up to a year, making it the first state to enforce a ban as backlash grows against AI infrastructure and its impact on the environment and on utility prices.

More than a dozen states have considered moratoria in response to residents’ fears about the potential costs of living next to datacenters, especially higher utility bills and negative environmental impacts.