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‘We should not have to sacrifice’: New York could become first state to temporarily ban large datacenters

‘We should not have to sacrifice’: New York could become first state to temporarily ban large datacenters

Summary

New York state lawmakers approved a one-year pause on building large datacenters, pending the governor’s decision to sign it into law. The moratorium aims to control the environmental impact and energy use of these facilities, which support artificial intelligence and other digital services.

Key Facts

  • New York’s legislature passed a bill to temporarily ban large datacenters over 20 megawatts (MW) of power use.
  • The bill now awaits approval from Governor Kathy Hochul.
  • Datacenters consume large amounts of energy and water, putting strain on New York’s aging electricity grid.
  • The moratorium targets new projects by big tech companies but does not affect currently permitted datacenters.
  • The bill requires an environmental review of datacenter impacts and aims to protect energy costs for residents.
  • Originally, the pause was planned for three years but was shortened to one year as a compromise.
  • Many local communities and other states have expressed concerns about datacenter growth due to higher utility bills and environmental effects.
  • Industry groups warn that the moratorium could hurt the economy and discourage investment in New York.
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