New York imposes landmark one-year ban on large data centres

Data centre moratorium pushes have gained steam around the US, with bans proposed in at least a dozen statesNew York State has imposed a one-year moratorium on the construction of large new hyperscale data centres amid concerns about rising costs and the impact on local water supplies, making it the first state in the United States to do so.New York Governor Kathy Hochul announced the ban on Tuesday, saying the state’s efforts are aimed at building a “regulatory framework” to address concerns posed by data centres.Recommended Stories list of 4 itemslist 1 of 4‘Piracy’: Will Trump’s 20 percent Hormuz toll find takers?list 2 of 4How the late Father Emir transformed Qatar’s economylist 3 of 4US consumer prices drop in June as energy costs tumblelist 4 of 4US President Trump drops 20% Strait of Hormuz fee planend of list“As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it’s my responsibility to take action and lead,” Hochul said in a release.During the pause, the state will not issue new discretionary permits for large data centre projects, which it defines as those that use 50 megawatts of power or more. The moratorium is intended to give the state time to assess electricity demand and the impact on local communities.The order also shifts the burden of costs associated with data centre operations onto the centres themselves rather than the general public.The state is requiring data centre developers to pay more for the power they use, contribute to upgrades of the state’s power grid, provide their own power, and invest in clean energy to operate these facilities.The governor also said the state is looking to repeal sales tax exemptions for data centres.Data centre construction has become a political flashpoint across the US ahead of the midterm elections, including in New York, which has 148 operational data centres — making it the state with the sixth-largest concentration of them.