The U.S. state of New York has imposed a one-year moratorium on the construction of large-scale data centers. The state government said the rapidly growing number of data center investments could drive up electricity costs, put pressure on natural resources and create uncertainty for the energy infrastructure, prompting it to suspend new projects temporarily.
New York Governor Kathy Hochul said the primary aim of the decision was to protect state residents from rising energy costs. Hochul said data centers could increase electricity bills, consume natural resources and create uncertainty for New Yorkers, adding that she felt a responsibility to take action in response to those risks.
The governor also announced that she would prepare legislation to eliminate sales tax exemptions granted to large data centers.
First U.S. state to impose a moratorium
With the decision, New York became the first U.S. state to temporarily halt the construction of large data centers.
Public opposition to data centers has grown in recent years. Maine had also passed legislation that would have halted new data center projects until November 2027. However, Democratic Governor Janet Mills vetoed the measure in April.
Mills said she supported a moratorium on data centers but declined to sign the bill because it did not include an exemption for a privately planned data center project at a site that had previously housed a paper mill whose operations had been shut down.
By contrast, some Democratic governors, including California Governor Gavin Newsom, Michigan Governor Gretchen Whitmer and Pennsylvania Governor Josh Shapiro, have voiced support for data center investments in their respective states.
Limited public support
Meanwhile, public opinion polls indicate that opposition to data center projects in the United States is relatively strong.
According to a Gallup poll published in May, 71% of Americans oppose, at least to some extent, the construction of data centers in their communities. That figure is higher than the 53% who oppose the construction of nuclear power plants.
Opposition to data centers reaches 75% among Democratic voters, while 63% of Republicans and 74% of independent voters also have negative views of new data center investments, according to the survey.
The poll suggests that concerns over data centers’ energy consumption, environmental impact and strain on local infrastructure are shared broadly across the political spectrum.
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