State AI Moratoria Cost National Leadership

When a large state (here, New York) piles on dozens of AI laws and even proposes moratoria on data centers, the cumulative effect can repulse investment, delay chip and data‑center projects, and create national supply‑chain and capability gaps. Those local regulatory decisions can therefore have outsized geopolitical consequences by weakening U.S. capacity relative to China. — Subnational AI regulation that targets infrastructure or imposes heavy compliance burdens can undermine national competitiveness and security by diverting or delaying investment in chips, data centers, and AI labs.