New York becomes the first US state to ban hyperscaler data centers and says it will “lead the way to creating the nation’s highest standards for data center development.”

New York State Temporarily Bans New Large-Scale Data Centers
One-year moratorium affects new campuses over 50 MW
NY wants to assess impacts on community, environment and network

New York state has banned the construction of new hyperscaler data centers, marking the latest step as growing local opposition against the construction of AI and cloud computing facilities, with communities citing concerns about rising electricity costs, water consumption and other environmental factors,

State Gov. Kathy Hochul is responsible for introducing the first statewide moratorium on new campuses, which imposes a one-year pause while the state addresses the environment, energy supply and communities.

Projects already authorized will continue as planned, but new construction will face restrictions and delays until the moratorium is lifted.

Data centers banned in New York – for a year

The one-year ban gives the state time to develop regulations to address some of the challenges presented by large hyperscaler data centers, including strain on network supply, emissions and other environmental impacts, and stress on local communities.

Under the new ban, campuses that require at least 50 MW of electricity will be affected, which isn’t much for an AI data center. Some of the largest measure energy consumption in hundreds of megawatts, or even gigawatts in the case of large flagship campuses like OpenAI’s Stargate project.

“[The moratorium] is a direct result of immense public pressure from citizens across the state demanding that their elected leaders protect them from the onslaught of big tech, which threatens the state’s air and water quality as well as the financial security of New Yorkers,” said Laura Shindell, New York State director of Food & Water Watch.

“New York has always been at the forefront of innovation and change, but we have also always ensured that New Yorkers benefit,” Hochul emphasized.

Although New York represents the first temporary statewide ban, other regions have also sought to suspend construction while the damage is assessed. Last month, Seattle also voted to ban new projects for a year.

Google logo on black background next to text