New York State Sets National Precedent: Halting Construction of New AI Mega Data Centers

(Central News Agency reporter Cindy Chang, San Francisco, June 14) New York Governor Kathy Hochul signed an executive order today to suspend the construction of data centers with power consumption exceeding 50 megawatts (MW) across the state for up to one year. During this period, new applications will not be accepted, and pending reviews will be paused. Typically, large-scale data centers consume at least 100MW of power.

Governor Hochul released a video on the social platform X, stating that the scale and speed of data center development have created unprecedented demands on energy and water resources, potentially driving up utility costs. She emphasized the need to establish safeguards to protect New York residents.

According to statistics from the data center information website Data Center Map, New York currently has 133 data centers. In comparison, Virginia has the nation's highest concentration with approximately 637, Texas has about 505, and California has around 292.

As summer temperatures rise, concerns over the high electricity and water consumption of data centers have intensified across the United States. Several local governments in California have begun restricting development, with particularly strong opposition in Southern California. Cities in Los Angeles County and Riverside County have halted new projects. Major cities like Seattle, Washington, and Denver, Colorado, have also implemented temporary suspension measures.

However, the move has drawn backlash from parts of the political sphere and the tech industry. Technology companies and supporters argue that halting data center construction could harm local investment and employment, and potentially weaken the United States' leadership in the global AI race. This contentious issue is expected to become a focal point in the upcoming election campaigns.

Dan Diorio, a senior official from the Data Center Coalition, was quoted by ABC7NY as stating, 'This moratorium will weaken New York's economy and send a signal that the state is not welcoming to business investment, potentially stalling or rendering unrecoverable tens of millions of dollars in investments.'

Earlier, the White House announced the 'Ratepayer Protection Pledge,' requiring developers to bear the costs of new power generation and grid upgrades, preventing electricity price pressures from being passed on to households and small users.

Tech giants including Amazon, Google, Meta, and Microsoft have signed this pledge, agreeing to fund the power and transmission infrastructure required for data centers to minimize impacts on residential electricity prices. (Editor: Chang Chih-hsuan) 1150715