New Delhi, July 15 -- New York has become the first U.S. state to impose a statewide moratorium on new hyperscale AI data centres, marking one of the most significant regulatory interventions yet in the rapidly expanding AI infrastructure landscape. The executive order temporarily pauses new large-scale projects while the state develops a framework to address their impact on energy, water resources, local communities, and the electricity grid.

The move comes at a time when governments worldwide are racing to attract AI investments, while simultaneously grappling with the growing demands these facilities place on critical infrastructure.

Governor Kathy Hochul announced the decision, saying the rapid expansion of hyperscale AI data centre...