N.Y. pauses new large data centre projects for a year

Gov. Kathy Hochul signs order that freezes any new large-scale data centres from moving forward in New York state.

Article content NEW YORK — New York will stop issuing permits for new large-scale data centres in the state for one year, according to an order signed by the governor on Tuesday. The pause will give the state time to develop regulation for the rapidly expanding sector, fired by growing demand for artificial intelligence. Recommended Videos Critics of data centres point to their high electricity consumption, which can strain local grids and inflate energy bills, as well as their heavy water use, noise generation, and the relatively small number of jobs they create.

“New York has always been at the forefront of innovation and change but we’ve also always guaranteed that New Yorkers benefit,” New York state Gov. Kathy Hochul said. “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. “New York will lead the way in creating the strongest standards in the nation for data centre development, ensuring that when companies succeed because of New York, New Yorkers succeed too.”

North County Colocation Services is pitching an expansion to its existing data centre site in Massena, N.Y.; it wasn’t clear Tuesday whether the pause would impact planning for this project. The Mohawk Council of Akwesasne has stated its concerns in opposition to the expansion. U.S. data centre construction spending has surged in recent years, with tech firms pouring tens of billions of dollars into building out infrastructure.

A June study by Allianz Trade estimated the centres emitted 286 million tonnes of carbon dioxide in 2025. AI already accounts for between 15 and 20 per cent of electricity consumption at data centres, and this share could climb to 40 per cent by 2030, the report said. © 2026 AFP