New York Pauses AI Data Center Construction

Governor Kathy Hochul signed an executive order imposing a one-year moratorium on new building permits for hyperscale data centers. The pause aims to establish a regulatory framework to protect the energy grid, environment, and utility rates.

Existing facilities and projects with valid permits are unaffected by the order. The state is also considering legislation to repeal sales tax exemptions for these large-scale AI infrastructure projects.