New York imposes landmark one-year ban on large data centres
Summary
New York State has paused building large new data centres for one year to study their effects on electricity use and local communities. The state wants data centres to pay more for power, help upgrade the power grid, and invest in clean energy.Key Facts
- New York has a one-year ban on building data centres using 50 megawatts or more of power.
- Governor Kathy Hochul announced the moratorium to protect natural resources and keep utility bills from rising.
- During this pause, no new permits for large data centres will be issued.
- Data centres must pay higher costs for electricity and contribute to power grid improvements.
- The state plans to remove sales tax exemptions currently available to data centres.
- New York has 148 operational data centres, ranking sixth in the U.S. by number of centres.
- Opposition to data centre construction is common among voters, with many concerned about environmental and health impacts.
- Similar moratoriums or restrictions have been proposed or enacted in other states like Vermont, Michigan, and Virginia.
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