New York has become the first US state to place a moratorium on the construction of data centers, The Washington Post reported. Governor Kathy Hochul signed an executive order pausing environmental permits for large data centers (consuming more than 50 megawatts) for up to a year. That would give state officials the required time to create rules protecting the electrical grid, environment and local communities. 

"New York will lead the way in creating the strongest standards in the nation for data center development, ensuring that when companies succeed because of New York, New Yorkers succeed too," said Hochul at a press conference. The order will take effect immediately and not affect projects that already have the required permits. 

The executive order is separate from New York's Responsible Data Center Development Act recently passed by the state legislature last month. That bill would have also banned data center permits for a year, while also requiring energy efficiency goals for data centers and specific benefits for host communities. Governor Hochul has yet to sign that bill but is considering it. She has previously expressed support for AI as a potential research tool and economic booster. 

In the face of public opposition to data centers, multiple states are attempt to enact bans. A moratorium was recently passed by Maine's state legislature but was vetoed by Democrat governor Janet Mills. Other states with legislation advancing include Washington, Wisconsin, Illinois, Pennsylvania, New Hampshire, Connecticut and South Carolina. Local bans have also been enacted in cities like Seattle. 

Hochul, a pro-business moderate, initially said that data center bans should be left to cities and communities. Ahead of local elections, however, she decided to follow through on the moratorium. "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," she said.