New York State Becomes First in the U.S. to Ban the Construction of Data Centers – Reuters

On July 14, New York became the first U.S. state to halt the construction of large new data centers by imposing a one-year moratorium. This decision was driven by concerns over a significant increase in electricity consumption, strain on the water supply, and negative impacts on local communities. 

The ban applies to facilities that consume 50 megawatts or more of energy. During the moratorium, the state’s Department of Environmental Conservation will not issue new permits. 

Governor Kathy Hochul emphasized that the development of such facilities places a strain on natural resources and the power grid. In addition, authorities are working to eliminate tax breaks for large data centers. At the same time, lawmakers are considering a bill that would impose an even broader ban on facilities using more than 20 megawatts, but passing it will take time.

Currently, there are more than 130 data centers in New York State, and more than 12 gigawatts of capacity are awaiting grid connection. This is putting significant pressure on rates: the state already ranks eighth in the U.S. for the highest retail price of electricity. According to surveys, most Americans oppose the construction of such facilities in their regions, so authorities will develop environmental standards and building codes to mitigate negative impacts.