New York is set to become the first state in the United States to temporarily halt the construction of new large-scale artificial intelligence data centres, marking one of the country's most significant regulatory interventions in the rapidly expanding AI sector. Governor Kathy Hochul is expected to sign an executive order imposing a statewide moratorium on new hyperscale data centres for up to one year while regulators develop environmental and energy standards for the facilities.
The decision reflects growing concerns over the enormous electricity and water requirements of hyperscale data centres, which house thousands of servers powering artificial intelligence applications. State officials argue that the rapid expansion of these facilities risks placing additional pressure on New York's electricity grid, increasing utility costs for consumers and placing greater strain on local water resources used for cooling operations.
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