New York Governor Kathy Hochul announced on Tuesday her intention to establish what she referred to as the first-ever statewide halt on the construction of new "hyperscale" AI data centers in the U.S.
Hochul highlighted the rapid expansion of these massive facilities, stating, "Across our state and the nation, large data centers are being developed at an astonishing pace." She emphasized that this unprecedented growth has escalated the demand for energy and water resources, potentially leading to increased utility expenses for consumers.
"Before this trend advances any further, it's essential to implement measures that will safeguard New Yorkers,” she continued. “That’s why I am enacting the nation’s first moratorium on new hyperscale AI data centers. This will allow us the time needed to create the most robust protections for ratepayers, local communities, and our energy infrastructure."
Acknowledging the transformative role AI data centers play in our future, Hochul stated that this progression shouldn’t come at the expense of New Yorkers. "Those who benefit from New York’s talent and resources are expected to safeguard our environment and contribute to our communities," she remarked. "This is a pivotal time, and New York is committed to ensuring a responsible approach."
An executive order addressing this initiative is slated to be signed by Hochul on Tuesday.
This decision arrives amid a frenzy among technology companies eager to establish large data centers across the United States to support AI developments, including complex large language models. The swift proliferation of these centers has sparked concerns nationwide regarding energy use, water depletion, and the impact on local infrastructure.
