New York becomes first US state to impose data centre moratorium
New York became the first US state on Tuesday to halt construction of large new data centres, imposing a one-year moratorium as concerns grow that the facilities driving the artificial-intelligence boom are raising power costs, straining water supplies and...
New York has become the first US state to impose a moratorium on large new data centre construction, pausing the development of facilities that have become central to the artificial intelligence boom but increasingly controversial for their impact on electricity systems and local resources.
Governor Kathy Hochul announced a one-year halt on Tuesday for data centres that require 50 megawatts or more of power, according to the governor’s office. The move is intended to give state officials time to examine the environmental and utility impacts of these projects, which critics say can raise power bills, strain water supplies and place added pressure on nearby communities.
“As data centre development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it’s my responsibility to take action and lead,” Hochul said, adding that she will also seek legislation to remove sales tax exemptions for large data centres.
During the moratorium, the state Department of Environmental Conservation will not issue discretionary permits that have not already been deemed complete, the governor’s office said. Hochul has directed state agencies to prepare a Generic Environmental Impact Statement so new facilities, once allowed again, will be subject to “consistent standards.” The state will also review the environmental effects of building and operating data centres in New York.
The suspension will end once those standards are finalized, according to the governor’s office.
New York’s legislature last month approved a separate bill that would place guardrails on data centres consuming more than 20 megawatts, a broader threshold than the executive order announced on Tuesday. However, the measure has not yet reached Hochul for signature. Her office described the bill as complicated and said it would take time to work through with lawmakers.
The policy lands amid a wider national debate over how to manage the infrastructure needed to support artificial intelligence. Technology companies are racing to expand server capacity, while lawmakers and regulators in many states are considering steps to limit the effect of such facilities on grids, household electricity costs and communities.
The issue has already sparked public backlash. A recent Reuters/Ipsos poll found that only one in three Americans approve of the rapid pace of data centre construction, and most would oppose one in their own neighborhood.
In New York, concern is sharpened by the state’s high electricity prices and limited power availability. A recent report from the New York independent grid operator said more than 12 gigawatts of very large energy-consuming loads, including data centres, were waiting to connect to the grid as of May. One gigawatt can power roughly 750,000 homes.
New York is home to more than 130 data centres, according to Data Center Map. That is far fewer than Virginia’s more than 600 and Texas’ roughly 500, but the state’s move makes it the first to adopt a full moratorium.
The report is based on a monitored public feed and has been prepared by Novexa News from the information made available in that feed.
Source: Dawn Tech - https://www.dawn.com/news/2015428/new-york-becomes-first-us-state-to-impose-data-centre-moratorium
