New York has officially declared war on data centers It is the first U.S. state to suspend construction for at least a year

Recently, the state of New York issued an executive order banning the construction of new data centers for one year, meaning the large facilities that host the servers and systems required for the operation of artificial intelligence systems, among many other things.

In the United States, the rapid expansion of data centers linked to the rise of artificial intelligence has long raised concerns, as these infrastructures consume large amounts of electricity, generate significant noise pollution and require substantial water resources to operate properly.

The Governor of the State of New York, Kathy Hochul, who signed the executive order on data centers, announced that during the year-long suspension a series of regulations will be introduced aimed at protecting the city, its residents and the surrounding area, also preventing local energy resources from being exploited by these facilities.

The problems associated with building data centers

The construction of data centers requires enormous investments: in addition to infrastructure works, sophisticated components and technological systems and highly specialized personnel for the design and management of the facilities are needed.

Another crucial aspect concerns energy consumption. Data centers must operate 24 hours a day, 365 days a year, ensuring continuity for digital services. A significant share of the energy used is dedicated to cooling systems, which are essential for keeping equipment at suitable temperatures. These systems, however, also require substantial water consumption, needed precisely for cooling purposes, with significant environmental implications.

The growing spread of artificial intelligence and the prospects for expanding its applications have driven the construction of new data centers around the world – including in Italy. There are currently more than 11,000 data centers, with a strong concentration in the United States, and the sector is often described as an area characterized by a "new gold rush".

Are data centers a bubble ready to burst?

In recent times, several investors and analysts have begun questioning the sustainability of the pace of data center expansion. The concern is that AI-related enthusiasm is pushing the market to build more facilities than actual demand requires, increasing the risk of a speculative bubble – which could burst (with significant financial consequences) if the expected growth fails to materialize.

Although there are now few doubts that artificial intelligence will have a huge impact on the technology sector, society and the economy, the issue remains the time and costs required to make all of this a truly profitable field.

The risk highlighted by some analysts is that massive investments in AI could generate expectations that exceed the market's ability to support them in the short term, creating the conditions for a possible financial crisis. The scenario being evoked is essentially the same as the "dot-com bubble", which burst at the beginning of the 2000s during the first major wave of enthusiasm for the advent of the Internet.