New York enacts one-year data center ban on projects larger than 50 megawatts — first US state to implement moratorium; will also pursue repealing tax exemptions

New York has become the first US state to implement a one-year moratorium on data center projects larger than 50 MW. Governor Kathy Hochul signed the ban to address concerns regarding depleted natural resources and rising utility bills. The state will develop a GEIS to ensure consistent standards and study the environmental effects of construction and operation. Additionally, the governor's office intends to pursue the repeal of existing tax exemptions for these artificial intelligence infrastructure hubs.