New York becomes the first state to impose a data center moratorium

baby

I've been very curious about these, because of course these are measures that are anti-tech in a number of ways (or at least unpopular in the tech circle). I have trouble understanding why Sanders has decided to be vocal about these, especially as he's been on the right side of the societal debate fence since forever. My guess is that he cares more about what AI is going to do for the common people, and he knows that we need to have this debate early (obviously, technology seems to increase disparity in places like the US). But still I'm not sure he's taking a stab at it in the right way. For New York state (not city, no Mamdani), it seems like it's a much more pragmatic view: it increases people's costs (energy, water, etc.) and there's too much tax exemption(/evasion) for data centers currently.

afavour

It’s a one year moratorium. I don’t see a problem with this. A lot of voters are concerned about the impacts data centers will have, those concerns are not entirely unwarranted. We don’t actually have to be moving at breakneck speeds, the AI companies just want you to think we do. A pause to investigate seems warranted.

cmiles8

Small town politics generally fly below the radar but this is a real hot button issue in a growing number of communities. Town meetings are dominated by residents lacking the room for otherwise sleeping zoning hearings that nobody attends. Folks don’t want data centers in their town and they’re increasingly successful in chasing developers out. Outside the bubble of tech the attitude towards AI and everything associated with it has turned quite negative. It’s hard to see that sitting in silicon valley but venturing out into “the real world” it’s hard to ignore.

jeffbee

Finally, we are free from the tyranny of Glonzo.

lenerdenator

I'm sure that their citizens who work as traders and investors on Wall Street will see this, acknowledge that there are serious problems with how data centers are being built in other parts of the country, and stop throwing mountains of money at companies that are participating in such schemes. </sarcasm>

aynyc

Don't worry, they'll just build the data centers in NJ and still considered NY 1-20. Sarcasm aside, I don't really know where they would build data centers in NYS. Electricity rate in northern and western NY is going thru the roof. ADK/Catskill have very sensitive environmental laws. Can't really build in lower hudson as real estate cost would be killer.

martythemaniak

Here's a view that I've not seen AI/DC proponents engage in (for example, Carmack's recent pro DC post) AI is an exciting and promising new tech, much like the web/internet in 90s and smartphones in late 2000s. Back in those times, the tech industry was far, far smaller, tiny in the 90s and maybe like 1/20th of the current size in the late 2000s. Tech companies were not a big part of people's every day lives, so these technologies could be seen as something exciting happening off to the side that you didn't need to engage it if you didn't want to. Today, Big Tech is absolutely ginormous and huge parts of people's lives are mediated by one of a half dozen companies that together form an interlocking set of barely accountable duopolies. It is this overbearing unescapable structure that is causing the backlash, because many people understand intuitively that this exciting new tech will be leveraged against them in every way possible by this structure. We cannot treat AI as neat new thing to play with, experiment with, find novel uses for, we have to put our guard up and defend against Big Tech and DC opposition is a very easy and straightforward way. DC opposition is also highly compatible with existing NIMBY networks and mindsets, which are bipartisan and widespread. Thus All that is to say is that it's not the technology, it's that bad people are in power and are weilding it to make your life worse in myriad ways - layoffs, increased electricity rates, slop, etc.

goda90

I'll say it again. If these data centers are really going to be so profitable, then it should be easy to pay for closed loop cooling, self-built renewable energy and storage, noise and light mitigation, and still pay taxes. Attempts to dodge those is pure greed and people are right to fight back.

khurs

>The state currently has more than 130 data centers, according to Data Center Map, compared with more than 600 in Virginia and about 500 in Texas. Texas is physically larger and 'business frienedly' so suspect they will be getting a lot more. Taylor Sheridan can do a new series where a Ranch owned by a family for many generations is targeted by a Datacentre company.

htrp

This just means that DC builds will move to other states. It isn't exactly like you need low latency/colocation for AI workloads.

wang_li

These feels like bribe seeking behavior. Pol sees an industry that likely will have a lot of potential market within the pol's jurisdiction, pol publicly puts a speedbump or roadblock in front of the industry causing the industry to start lobbying pol/pol's friends.

archonis

2026 is an election year for the Governor. One year moratorium conveniently allows the incumbent to have cake and eat it too.

ReptileMan

A good solution for this is just the AI companies to cut access to this types of areas. After all AI is just bubble that will pop any second. It obviously have no economic values as the tokenmaxxing fiasco showed. I know it is true because NYTimes wrote on the matter.

kyledrake

A lot of people run production, non-AI servers out of New York data centers. This will be a serious problem for a lot of people, including smaller companies, when they can't expand capacity in New York anymore and prices for what's left start going through the roof. It's not always easy to move servers to other data centers, not everything is an eventually consistent database.

UncleOxidant

Oregon has a 1-year moratorium on new data centers qualifying for the state's Enterprise Zone (EZ) property tax incentive programs (as of June 5, 2026. We shouldn't be giving tax incentives to these Data Centers. But it looks like this NY moratorium goes way beyond that to actually stopping construction.

int32_64

I have a family member that wants to ban all data centers and I felt like Daniel Plainview in the milkshake scene showing them the AWS region selector interface, explaining that regional data center bans in deep leftist areas won't move the needle. Nothing short of a totalitarian one world government can stop the development of AI technology, there's simply too much demand. It's just not happening. These people should make peace with it sooner than later and propose more reasonable terms like mandating AI companies invest in renewable energy.

bklosky

Regardless of your personal feelings about AI, this is pretty clumsy regulation that will just cause Tiebout sorting away from NY. If there are negative externalities, tax 'em, use the proceeds for some feel-good social programming, and let the data center builders internalize the costs...

mcphage

What would the advantage be to New Yorkers if they were built here?

EcommerceFlow

Instead of blaming the energy supply restrictions those states have imposed, the politicians are now blaming datacenters.

TheGRS

I consider myself pretty YIMBY, but the data center build outs are definitely starting to catch my eye. On one hand I want to stay YIMBY here, my typical problem with arguments against this stuff is that it looks at the resources as finite. We can/should build more power capacity. Water usage concerns already have solutions. The market should be allowed to do its thing. On the other hand I think there are looming problems with data centers. Energy is the obvious one because its detrimentally affecting residents who had no part or say in someone gobbling up a public resource. And its cheaper to build the centers that don't recycle their water usage, so some legislation is needed there. A moratorium toward those ends makes a lot of sense to me. I have one other unfinished thought that maybe a wait-and-see mentality is a good thing right now. We might be approaching peak LLM usage, maybe. If we are nearing a bubble burst, I can see how a state's leadership might want to protect its residents however it can, but I don't totally know if a moratorium on this achieves that or just delays the inevitable.