NEW YORK IMPOSES ONE-YEAR MORATORIUM ON LARGE DATA CENTRE CONSTRUCTION

New York became the first state in the United States to pause construction of large data centres after Governor Kathy Hochul announced a one-year moratorium on Tuesday. The statewide ban applies to data centres consuming 50 megawatts or more of power. Officials stated the moratorium will remain in place until the state establishes what it terms "consistent standards" for responsible data centre development across New York.

The moratorium follows mounting pressure from residents and elected officials across the country concerned about potential pollution, rising energy costs and diminishing water supplies linked to data centre construction. Researchers reported that more than $130 billion in data centre projects have been blocked or delayed by public opposition so far this year. At the federal level, Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez introduced legislation seeking a possible nationwide construction ban, though Republican opposition to such measures has been documented. Governor Hochul directed state officials to develop an Environmental Impact Statement to examine potential environmental effects of data centre construction and operation in New York.

New York contains fewer data centres than states including Virginia and Texas that have attracted more projects, but the state had accumulated a substantial queue of data centres awaiting approval to connect to its energy grid. Some of these pending projects had generated local opposition, and New York lawmakers had previously passed legislation supporting a data centre moratorium. The state's action signals growing elected official attention to residents' concerns about whether data centre development will benefit local communities before such projects receive approval.