New York Governor Kathy Hochul has put a one-year pause on large-scale data center development, making it the first state to do so. The move follows increasing pressure from lawmakers and environmental groups who argue that these facilities strain energy resources and contribute to pollution.

The executive order affects data centers over 50 megawatts, pausing environmental reviews for a year while assessing their broader impacts. It also proposes an end to tax incentives for such projects. Hochul said the moratorium would allow for the creation of stronger frameworks protecting communities from data center growth.

While the legislation passed in May had stricter limits, supporters praised the governor’s action as crucial for planning and environmental protection. This comes amid a growing nationwide movement against data centers, driven by concerns over energy consumption and ecological impact.

In her State of the State address earlier this year, Hochul highlighted the need for data centers to “pay their fair share” for power usage. Other states have also introduced moratoriums, reflecting a broader trend of increasing scrutiny on these large-scale technologies.