New York becomes first state to impose data center moratorium

New York became the first state in the nation to impose a moratorium on the construction of data centers Tuesday, a striking setback for artificial intelligence companies that politicians once courted for investment but have now triggered public fears about energy prices and water use.

Gov. Kathy Hochul (D) signed an executive order pausing environmental permits for large data centers for up to a year, saying the delay would give state officials time to craft rules to protect the electrical grid, the environment and communities where developers want to build.