The Globe and Mail reports in its Wednesday, July 15, edition that New York became the first U.S. state to pause the construction of large new data centres for a year, citing concerns over rising power costs, strained water supplies and impacts on local communities due to the artificial intelligence boom.
A Reuters dispatch to The Globe reports that New York's moratorium highlights a national debate on managing infrastructure for artificial intelligence. As tech companies rush to build data centres, lawmakers in various states are mulling measures to mitigate their impact on electricity grids, utility costs and local communities.
"As data-centre 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 Governor Kathy Hochul, who said she will also pursue legislation to repeal sales-tax exemptions for large data centres.
The construction ban will apply to data centres that use 50 megawatts or more of power.
During the moratorium, the state's Department of Environmental Conservation will not issue any discretionary permits not already deemed complete, the Governor's office said.
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