{"slug": "new-york-blocks-large-data-centers-for-a-year", "title": "New York blocks large data centers for a year", "summary": "New York Gov. Kathy Hochul signed an executive order Tuesday imposing the first statewide moratorium on hyperscale data centers for up to a year, pausing permits for large facilities as the state creates rules to address energy demand, water usage, and environmental risks. The move, which blocks new construction of power-hungry data centers fueling artificial intelligence, aims to protect consumers from rising utility bills and environmental harm, but faces opposition from the Data Center Coalition and President Donald Trump who argue it will drive investment elsewhere.", "body_md": "# New York won’t build big data centers for a year as it weighs energy and climate risks\n\n## New York won’t build big data centers for a year as it weighs energy and climate risks\n\nNEW YORK (AP) — No large [data centers](https://apnews.com/article/ai-data-centers-environment-climate-footprint-a792f184a9f2833b5388dbae8b41ca95) 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](https://apnews.com/article/data-centers-ai-artificial-intelligence-renewable-energy-7995717f506914fc181a07d32d1867a5).\n\nGov. [Kathy Hochul](https://apnews.com/hub/kathy-hochul) signed an executive order Tuesday imposing the country’s first [statewide moratorium](https://apnews.com/article/data-center-moratoriums-maine-janet-mills-352ad4fbd531d905b9415258692b318f) on hyperscale data centers, which house thousands of computer servers and require massive amounts of energy and a steady supply of water to keep cool.\n\nThe move pushes the state into a raging [debate](https://apnews.com/article/data-center-heat-wave-lowell-5607b4ea8ef9776b28268561060752a8) over [how to regulate](https://apnews.com/article/ai-data-centers-mayors-london-climate-week-37df5184ad4f28ea084082563182e1ea) the AI industry, as concerns over rising electric bills and [environmental risks](https://apnews.com/article/data-centers-ai-artificial-intelligence-renewable-energy-7995717f506914fc181a07d32d1867a5) collide with a desire to stimulate local economies and foster the U.S. tech sector.\n\n“The bottom line is that progress shouldn’t 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,” Hochul said at a celebratory signing ceremony in Brooklyn.\n\nPresident [Donald Trump](https://apnews.com/hub/donald-trump) has [warned states](https://apnews.com/article/trump-artificial-intelligence-chatbots-ai-23a0e44ab05402ddfe9cdfd0bffa0ade) 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.\n\nEarlier this year, Maine [seemed poised](https://apnews.com/article/data-centers-moratoriums-maine-artificial-intelligence-ai-aa63ba087d5ad53ab0735893646e7357) to establish a similar moratorium. But the measure was vetoed by Democratic Gov. [Janet Mills](https://apnews.com/hub/janet-mills) because it would have blocked a proposed data center in a town that has struggled after a mill closed.\n\nMoratoriums 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.\n\nNew York’s executive order pauses state permitting for new large data centers and directs state regulators to create standards that address environmental impacts, energy demand, water usage and other factors, the governor’s office said.\n\nDan Diorio of the Data Center Coalition, a trade association, said the moratorium “will ensure that those investments, jobs, and economic activity flow elsewhere rather than to New York — with impacts far beyond the data center industry.”\n\nThe decision in New York also carries political significance for Hochul’s reelection campaign and the state’s 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’s ambitious goals](https://apnews.com/article/affordability-climate-change-clean-energy-goals-democrats-1780f09228246dee569c3b63d70bd014) to reduce greenhouse gases, citing rising energy costs for consumers.\n\nHochul’s Republican opponent in the governor’s 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 center projects that promise enough economic benefits.\n\nIn a statement Tuesday, Blakeman said the governor “doesn’t work with local governments and business leaders to figure out how to get things done,” while pledging to “modernize our economy to bring costs down and create good jobs.”\n\nThe state Legislature this year approved its own moratorium bill, but Hochul’s 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.\n\nState Sen. Kristen Gonzalez, a Democrat who sponsored the legislation, joined the governor during the signing ceremony. “If Big Tech is coming onto our turf, it should be on our terms,” she said.\n\nNew York, at this stage, has not been a destination for the largest hyperscale data centers.", "url": "https://wpnews.pro/news/new-york-blocks-large-data-centers-for-a-year", "canonical_source": "https://apnews.com/article/new-york-data-centers-moratorium-ai-c1e05b74208a6c570eec7c658ac8f187", "published_at": "2026-07-21 02:31:03+00:00", "updated_at": "2026-07-21 02:52:54.542819+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-policy", "ai-infrastructure", "ai-ethics"], "entities": ["Kathy Hochul", "New York", "Data Center Coalition", "Donald Trump", "Janet Mills", "Maine", "Bruce Blakeman"], "alternates": {"html": "https://wpnews.pro/news/new-york-blocks-large-data-centers-for-a-year", "markdown": "https://wpnews.pro/news/new-york-blocks-large-data-centers-for-a-year.md", "text": "https://wpnews.pro/news/new-york-blocks-large-data-centers-for-a-year.txt", "jsonld": "https://wpnews.pro/news/new-york-blocks-large-data-centers-for-a-year.jsonld"}}