New York becomes first state to pause approval of new large data centers

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New York Governor Kathy Hochul has ordered a temporary halt on approvals for new large-scale data centers in the state. The move makes New York the first US state to implement such a pause on data center construction. Hochul cited concerns that the AI-driven surge in data center demand could drive up electricity costs for residents. The governor also flagged potential impacts on water supplies and the erosion of local community control as key reasons behind the decision.

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