NEW YORK – New York is taking a significant step to address the environmental impact of technology. Governor Kathy Hochul is expected to sign an executive order that would temporarily stop the construction of large data centers across the state for up to a year. This decision comes as a response to concerns about the significant energy and water usage these facilities require, especially as they support the growing field of artificial intelligence (AI).
Data centers are crucial for powering the internet, but they can consume enormous amounts of energy and water to maintain the thousands of servers that run continuously. Governor Hochul stated, “As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it’s my responsibility to take action and lead.”
The new order will place a hold on state permits for large data centers while regulators work on establishing standards that will consider environmental impacts, energy demand, and water usage. This initiative aims to balance technological growth with the need to protect New York’s resources.
Supporters of data center development argue that halting these projects could hinder job growth and allow other countries, like China, to take the lead in AI technology. They believe that allowing local governments to negotiate with tech companies could bring economic benefits to their communities.
Interestingly, earlier this year, Maine attempted to establish a similar moratorium, but it was vetoed by Governor Janet Mills. The veto was influenced by the potential economic benefits a proposed data center could bring to a town struggling after the closure of a local mill. While many states have considered similar bans, few have made substantial progress, although some local areas have imposed temporary restrictions.
This decision also carries political weight for Hochul, especially as she prepares for reelection amidst tight congressional races this fall. With high utility bills being a pressing concern for many residents, her administration is trying to address these affordability issues. Earlier this year, Hochul adjusted New York’s ambitious greenhouse gas reduction goals, citing rising energy costs for consumers as a factor.
On the other hand, Hochul’s opponent, Nassau County Executive Bruce Blakeman, disagrees with the moratorium. He believes that local governments should be empowered to negotiate with tech companies to ensure that any data center projects include sufficient economic incentives for the community.
Although the state legislature approved a moratorium bill, Hochul’s team deemed it too complex and in need of further refinement. Instead, she has chosen to issue an executive order that will take effect immediately upon signing. As it stands, New York has not yet attracted the largest hyperscale data centers, but this move could shape its future in the tech landscape.
