New York authorities have suspended the construction of powerful servers due to the threat to the power grid
7/19/2026, 06:00 AM • Евгения Слив

New York State Governor Kathy Hokul has signed an important decree on a one-year moratorium. This document prohibits the construction of new high-power data centers. We are talking about facilities that consume 50 megawatts of energy or more. Government agencies need a pause to develop strict regulatory requirements. The authorities want to assess the potentially harmful effects of such giants on local communities. The main problems lie in the huge water consumption and high noise. There is also a serious strain on the regional energy system. Hokul stated that the development of this industry threatens to increase utility bills. In addition, it depletes natural resources and creates uncertainty for residents. New York is determined to pave the way for the strictest standards in the country. The success of companies should bring real benefits to the residents of the state.
Although New York is not yet the main center of the data center boom, requests are growing. About thirty potential facilities requested connection to the grid from 2020 to 2025. The state's infrastructure is poorly prepared for the emergence of such a large number of new capacities. The average price of electricity for residential buildings has already increased by almost 68% since 2019. The decree prescribes to prepare a statement on the environmental impact of future facilities. It should take into account the impact on water quality, air quality and overall energy consumption. The governor also instructed to issue a Framework Program for Public Investments within 60 days. She will give clear recommendations to local structures to coordinate the benefits. The program will include provisions for improving infrastructure and direct financial support to communities.
Among other measures, Hokul seeks to abolish the exemption from sales tax. This benefit is now valid for massive data centers across the state. Such steps coincide with attempts by other US lawmakers to introduce similar moratoriums. Local residents across the country continue to actively oppose the construction of facilities. They cite the same concerns about noise, energy, and climate. For example, residents of Wisconsin recently sued Microsoft over the noise. According to a recent Reuters and Ipsos poll, public opinion is sharply negative. Only one in three Americans approves of the rapid pace of data center construction. Most citizens would categorically oppose the construction of such an object in their area.
