New York becomes the first state to impose a data center moratorium

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https://www.reuters.com/world/new-york-becomes-first-state-impose-data-center-moratorium-2026-07-14/

New York becomes the first state to impose a data center moratorium
By Jasper Ward
July 14, 2026 4:05 AM CDT

July 14 (Reuters) - New York became the first U.S. state on Tuesday to ‌halt construction of large new data centers, imposing a one-year moratorium as concerns grow that the facilities driving the artificial-intelligence boom are raising power costs, straining water supplies and burdening local communities.

The moratorium positions New York at the forefront of a growing national debate over how to manage the infrastructure needed to support artificial ​intelligence. While technology companies are racing to build new data centers, lawmakers and regulators in dozens of states are weighing ​measures to limit their effect on electricity grids, utility bills and local communities.

"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," ​said Hochul, who said she will also pursue legislation to repeal sales tax exemptions for large data centers.

The construction ban will apply to ​data centers that use 50 megawatts or more of power, officials in the governor's office said.

During the moratorium, the state's Department of Environmental Conservation will not issue any discretionary permits not already deemed complete, the governor's office said.

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