New York authorities have made an unprecedented decision capable of changing the landscape of the state's technological infrastructure. As reported by Reuters, a one-year moratorium has been introduced in the city on the construction of large data centers necessary for the development of artificial intelligence. This is the first such step among all US states, taken against the backdrop of intensified disputes over the impact of such facilities on the environment and the budgets of ordinary residents.

State resource priority

The restriction applies to facilities consuming 50 megawatts of electricity or more. During the year of the moratorium, authorities will refuse to issue new permits for projects that have not yet passed the necessary stages of approval. New York Governor Kathy Hochul explained that the decision is necessary to protect the interests of the population from the consequences of the rapid growth of the AI industry.

"When the development of data centers threatens to increase electricity bills, deplete natural resources, and create uncertainty for New York residents, I must act," Hochul stated. According to her, the rapid expansion of infrastructure creates excessive pressure on the state's power grid.

Action plan and tax incentives

During the imposed pause, the State Department of Environmental Conservation is required to prepare a comprehensive assessment of the impact of such facilities. The goal of the analysis is to create unified rules for future projects and determine their real impact on energy and the environment. In addition, authorities plan to seek the cancellation of tax incentives for large data centers, which should reduce the incentives for their uncontrolled construction.

Global context: space and land

New York's decision fits into a global trend of searching for new solutions for hosting AI infrastructure. Earlier, Google presented the ambitious Project Suncatcher — a project to create a space network of data centers. Such facilities are planned to be placed in orbit and powered by solar energy, which could become an alternative to ground-based capacities.

However, the situation on the ground remains tense. In the US, cases have already been recorded where land donated for parks was sold for the construction of data centers for millions of dollars, which only intensifies public dissatisfaction and confirms the need for strict regulation.