New York becomes the first state to impose a data center moratorium

New York became the first U.S. state on Tuesday to halt construction ​of large new data centers, imposing a one-year moratorium as concerns grow that the facilities driving the artificial-intelligence boom are raising power costs, straining water ‌supplies and burdening local communities.

The moratorium positions New York at the forefront of a growing national debate over how to manage the infrastructure needed to support AI. While technology companies are racing to build new data centers, lawmakers and regulators in dozens of states are weighing measures to limit their effect on electricity grids, utility bills and local communities.