New York Is First State to Press Pause on AI Data Center Construction

Gov. Kathy Hochul signs an executive order to pause new construction, but it won't affect data centers that have already broken ground.

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New York Gov. Kathy Hochul signed an executive order on Tuesday to pause the issuance of new building permits for hyperscale data centers in the state, the first state-level freeze on new construction of AI data centers.

The moratorium could last up to one year with the expectation that the state will use that time to "build a regulatory framework that protects ratepayers, the environment, the energy grid and communities across the state."

"As data center 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," Gov. Hochul said in a press release. "New York will lead the way in creating the strongest standards in the nation for data...

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