No large data centres can be built in New York for up to a year as the state creates rules to protect the environment and its energy grid from the power-hungry facilities fueling artificial intelligence.<\/p>\n
Gov. Kathy Hochul signed an executive order Tuesday imposing the country\u2019s first statewide moratorium on hyperscale data centres, which house thousands of computer servers and require massive amounts of energy and a steady supply of water to keep cool.<\/p>\n
The move pushes the state into a raging debate over how to regulate the AI industry, as concerns over rising electric bills and environmental risks collide with a desire to stimulate local economies and foster the U.S. tech sector. <\/p>\n
\u201cThe bottom line is that progress shouldn\u2019t arrive with a higher utility bill, deleted water supply or noise pollution, so we have no choice but to address these challenges created by these massive facilities,\u201d Hochul said at a celebratory signing ceremony in Brooklyn. <\/p>\n
U.S. President Donald Trump has warned states not to slap regulations on the AI industry, echoing tech companies in arguing such moves hamper job growth and cede ground to China in a race to lead in the rapidly growing field. <\/p>\n
Earlier this year, Maine seemed poised to establish a similar moratorium. But the measure was vetoed by Democratic Gov. Janet Mills because it would have blocked a proposed data centre in a town that has struggled after a mill closed.<\/p>\n
Moratoriums have been proposed in at least a dozen states but have not gotten far, though some counties and municipalities have imposed their own temporary bans. <\/p>\n
New York\u2019s executive order pauses state permitting for new large data centres and directs state regulators to create standards that address environmental impacts, energy demand, water usage and other factors, the governor\u2019s office said. <\/p>\n
Dan Diorio of the Data Center Coalition, a trade association, said the moratorium \u201cwill ensure that those investments, jobs, and economic activity flow elsewhere rather than to New York \u2014 with impacts far beyond the data centre industry.\u201d <\/p>\n
The decision in New York also carries political significance for Hochul\u2019s reelection campaign and the state\u2019s tight congressional races this fall, as Democrats move to address affordability concerns over high utility bills. In addition, the governor this year softened New York\u2019s ambitious goals to reduce greenhouse gases, citing rising energy costs for consumers.<\/p>\n
Hochul\u2019s Republican opponent in the governor\u2019s race, Nassau County Executive Bruce Blakeman, opposes a statewide moratorium and says local governments should be allowed to strike deals with tech companies for data centre projects that promise enough economic benefits.<\/p>\n
In a statement Tuesday, Blakeman said the governor \u201cdoesn\u2019t work with local governments and business leaders to figure out how to get things done,\u201d while pledging to \u201cmodernize our economy to bring costs down and create good jobs.\u201d<\/p>\n
The state Legislature this year approved its own moratorium bill, but Hochul\u2019s office described the legislation as complex and said it needed additional work. Instead, the governor opted for an executive order that would take effect immediately.<\/p>\n
State Sen. Kristen Gonzalez, a Democrat who sponsored the legislation, joined the governor during the signing ceremony. \u201cIf Big Tech is coming onto our turf, it should be on our terms,\u201d she said.<\/p>\n
New York, at this stage, has not been a destination for the largest hyperscale data centres.<\/p>\n
—<\/p>\n
Anthony Izaguirre, The Associated Press<\/p>\n
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