New York becomes the first state to enact a data center moratorium
Summary
New York Governor Kathy Hochul has enacted the nation's first statewide moratorium on new hyperscale data centers, effectively blocking environmental permits for facilities exceeding 50 megawatts for up to one year. This executive action is designed to allow the state's Department of Public Service time to establish regulations regarding environmental impacts, such as air quality and water usage, and to prevent potential increases in utility costs for residents. While the governor reviews separate, more restrictive legislation passed by state lawmakers, she also intends to propose the removal of sales tax exemptions for large data centers to address growing concerns over infrastructure strain and energy demands driven by AI development.
(Source:The Verge)