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New York bans data center construction for a year, rattling AI industry

New York became the first state to pause all construction of massive new data centers after Democratic Governor Kathy Hochul announced a one-year moratorium on Tuesday, Reuters reported.

The state-wide ban applies to data centers using 50 megawatts or more, officials told Reuters, and it won’t be lifted until the state figures out what “consistent standards” for responsible data center development in New York should look like.

Across the US, calls to halt data center construction have multiplied, as Americans grow increasingly concerned about risks of pollution, rising energy costs, and diminishing water supplies. At the federal level, Bernie Sanders (I-Vt.) and Alexandria Ocasio-Cortez (D-N.Y.) have introduced legislation seeking a possible nationwide construction ban. But Republicans are seemingly unlikely to embrace that legislation, given Donald Trump’s claim that such moratoriums would threaten America’s lead in the AI race.

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