The state of New York has announced a one-year moratorium on the construction of large-scale data centres, allowing authorities time to assess their impact on electricity demand, environmental sustainability, and water resources.
State officials said the temporary ban was introduced amid growing concerns that the rapid expansion of large data centres especially those supporting artificial intelligence (AI) and cloud computing could place excessive pressure on the power grid, increase energy consumption, and contribute to greenhouse gas emissions.
During the one-year suspension, the New York government will carry out a comprehensive review to develop regulations that ensure future data centre projects can operate without harming the state's environment or energy infrastructure.
Supporters of the measure say it will promote sustainable development, protect natural resources, and prevent excessive strain on the electricity system. However, several technology companies have expressed concern that the moratorium could discourage investment, delay AI infrastructure projects, and reduce New York's competitiveness in the growing digital economy.
State officials emphasized that the ban is temporary and is intended to create a balanced policy framework that supports technological innovation while safeguarding environmental protection and long-term energy security.