Archive · 20 Jul 2026
New York Bans New Data Centers Amid Power Crisis
New York has stopped allowing new big data centers because they use too much electricity.
This has made power bills go up a lot.
The state's governor, Kathy Hochul, said no new data centers can be built for at least a year.
Meanwhile, a big power grid called PJM Interconnection said it doesn't have enough electricity to meet future needs, partly because data centers use so much power.
Virginia, which has many data centers, started taxing them.
The White House is also getting involved to make sure regular people's electricity bills don't go up too much because of these data centers.
All of this is happening because artificial intelligence and data centers need a lot of electricity, and the power grids aren't ready for it.
New York imposed a one-year moratorium on new hyperscale data centers using 50 megawatts or more of power.
Average residential electricity prices in New York have increased by 68% since 2019.
PJM Interconnection's latest capacity auction tied a record $16.4 billion, with data centers accounting for $6.3 billion.
Virginia implemented a new tax of $0.011 per kilowatt-hour on data centers' electricity consumption.
The White House is preparing to gather utilities and data center developers to address the impact on household power bills.
- Who
- Governor Kathy Hochul, PJM Interconnection, Virginia, White House
- What
- New York banned new hyperscale data centers, PJM Interconnection reported record costs and supply shortages, Virginia imposed a tax on data centers, and the White House is preparing to address the issue.
- When
- July 14, 2024 (New York ban), July 1, 2024 (Virginia tax)
- Where
- New York, Virginia, and the larger PJM Interconnection grid serving 13 states and Washington DC
- Why
- To address rising electricity prices, grid reliability concerns, and the impact of data centers on power and water supplies.
- State
- New York
- Governor
- Kathy Hochul
- Moratorium Duration
- Up to one year
- Power Threshold
- 50 megawatts
- Electricity Price Increase
- 68% since 2019
- PJM Interconnection Capacity Auction
- $16.4 billion
- Data Centers' Share
- $6.3 billion
- Virginia Tax
- $0.011 per kilowatt-hour