New York has imposed a year-long ban on building large data centers.

Governor Kathy Hochul signed an executive order on Tuesday.

It is the first statewide moratorium of its kind in the U.S.

The order targets hyperscale data centers, which house thousands of servers.

They need huge amounts of energy and water.

The move aims to protect the environment and the energy grid.

Hochul said progress should not bring higher utility bills or water shortages.

The order pauses state permits for new large data centers.

It also directs regulators to create standards on energy use, water use, and other impacts.

The decision enters a national debate on AI regulation.

President Donald Trump has warned states not to restrict the AI industry.

Tech companies argue such rules hurt job growth and help China.

At least a dozen states have proposed similar moratoriums, but few have passed.

Dan Diorio of the Data Center Coalition said the ban will push investments elsewhere.

Hochul’s Republican opponent, Bruce Blakeman, opposes the moratorium.

He said local governments should make their own deals with tech firms.

New York has not yet been a major destination for the largest data centers.