NEW YORK — Public opposition to new data center developments intensified across the United States on Tuesday, prompting policymakers to reconsider how rapidly artificial intelligence infrastructure should expand as communities raise concerns over energy demand, water consumption and local environmental impacts.
The growing backlash gained fresh momentum after New York Governor Kathy Hochul issued an executive order imposing a one-year moratorium on new data centers with power demands of 50 megawatts or more, making New York the first U.S. state to temporarily halt permitting for large-scale facilities. State officials said the pause is intended to allow regulators to develop standards addressing electricity use, water consumption, consumer costs and environmental impacts.
Hochul said the state must ensure that future projects protect residents from higher utility bills while allowing technological innovation to continue under clearer regulatory safeguards. Existing data centers and projects that have already secured permits are not affected by the order.
The decision reflects broader resistance emerging in communities across the country, where residents have increasingly challenged proposed facilities over concerns including electricity demand, water usage, diesel backup generators, noise and land use. Local governments in several states have delayed, restricted or reconsidered projects following public hearings and organized campaigns by residents.
Analysts said the opposition is becoming a significant factor in planning new AI infrastructure. Morgan Stanley said community resistance has begun delaying projects and could reshape where future data centers are built, while also affecting investment timelines.
Polling released in recent weeks also indicates rising public skepticism toward additional data center construction, although surveys have produced varying results depending on methodology. Recent research cited by several organizations has found growing concern among Americans about the facilities' effects on local resources and electricity prices.
Technology companies and industry groups continue to argue that new data centers are essential to support expanding demand for cloud computing and artificial intelligence services. They have said the facilities generate construction employment, tax revenue and digital infrastructure while investing in measures to improve energy efficiency and reduce environmental impacts.
Officials in New York said regulators will use the moratorium period to evaluate future permitting standards before deciding whether large-scale data center development can resume under revised rules.
