New York State halts construction of all new data centers
New York has become the first state to temporarily halt approval of large data centers, as Gov. Kathy Hochul argues the AI-driven building boom shouldn't come at the expense of higher electricity costs, water supplies, or local control. Hochul's order applies to data centers 50 megawatts or larger, potentially affecting more than a dozen projects. The state's Department of Environmental Conservation will not issue any permits that haven't already been completed.
Key Takeaways
- While resource concerns have fueled some of the backlash, broader concern about AI has been behind much of it as well.
A recent Pew Research report found that only 10% of Americans were more excited than concerned about AI use in daily life, and just 23% felt that the technology would have a positive impact on how people do their jobs.
- "These data centers can only be built, should only be built in places that want them.
So they will never be exempt from local zoning, local approvals."
- The average data center built in the last few years has been smaller than 100 megawatts, but those in development are expected to be much larger as AI drives computing demands higher.
Through 2030, nearly a quarter of new data centers will exceed 500 megawatts , according to BloombergNEF, driven by increasing AI investment.
- Just years ago, data centers were sought after by states eager to secure new development projects, but recently, public sentiment on data centers has soured as new projects have grown in size.
The scale and pace at which they're being constructed has started to strain the electrical grid in addition to regional resources like water and farmland.
- Last month, the Federal Energy Regulatory Commission, which is led by a Trump appointee, told grid operators to develop special fast lanes to speed data centers' interconnections.
Stats & Key Facts
- #A recent Pew Research report found that only 10% of Americans were more excited than concerned about AI use in daily life, and just 23% felt that the technology would have a positive impact on how people do their jobs.
- #Through 2030, nearly a quarter of new data centers will exceed 500 megawatts , according to BloombergNEF, driven by increasing AI investment.
- #In December, more than 230 organizations called for a nationwide pause on new data centers.
New York has become the first state to temporarily halt approval of large data centers, as Gov. Kathy Hochul argues the AI-driven building boom shouldn't come at the expense of higher electricity costs, water supplies, or local control. Hochul's order applies to data centers 50 megawatts or larger, potentially affecting more than a dozen projects.
The state's Department of Environmental Conservation will not issue any permits that haven't already been completed. While resource concerns have fueled some of the backlash, broader concern about AI has been behind much of it as well. A recent Pew Research report found that only 10% of Americans were more excited than concerned about AI use in daily life, and just 23% felt that the technology would have a positive impact on how people do their jobs.
Less than a quarter of the general public feels that AI will give the economy a boost, and less than a third were confident that the government would regulate the technology responsibly. "Progress shouldn't arrive with a higher utility bill, deleted water supply, or noise pollution," Hochul said at a press conference in Brooklyn. "These data centers can only be built, should only be built in places that want them.
For more details please read the original article at TechCrunch AI.
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