On July 14, New York became the first state to halt data center construction.

The one-year ban applies to data centers using 50 megawatts or more of electricity. New York’s initiative puts a growing national debate over how to manage infrastructure to support AI in the spotlight.

Lawmakers and regulators in dozens of states are weighing measures to limit the effect of new data centers on electricity grids, utility bills, water supplies, and overall impacts on communities.

As of May, there were more than 12 gigawatts of very large energy-using loads, including data centers, scheduled to connect to New York’s grid, according to a Reuters report. One gigawatt of electricity can power about 750,000 homes.

New York now hosts more than 130 data centers. Other states such as Virginia, with more than 600, and Texas, with about 500, are home to many more. New York has among the highest electric rates in the nation.

New York Governor Kathy Hochul said she would also seek legislation to repeal sales tax exemptions for large data centers, Reuters reported.