New York became the first U.S. state on Tuesday to halt construction ​of large new data centers, imposing a one-year moratorium as concerns grow that the facilities driving the artificial-intelligence boom are raising power costs, straining water ‌supplies and burdening local communities. The moratorium positions New York at the forefront of a growing national debate over how to manage the infrastructure needed to support AI. While technology companies are racing to build new data centers, lawmakers and regulators in dozens of states are weighing measures to limit their effect on electricity grids, utility bills and local communities. “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,” said New York Governor Kathy Hochul. She added that she would ​also pursue legislation to repeal sales tax exemptions for large data centers.

Full report : New York becomes first U.S. state to impose AI data center ban.