Friday, June 5, 2026

Daily Digest — June 5, 2026

New York Legislature Passes First-in-Nation Data Center Moratorium Bill

The New York State Legislature has passed the Responsible Data Center Development Act, which would impose a one-year moratorium on new data center permits for facilities exceeding a certain power threshold. According to Inside Climate News, the bill targets facilities with peak energy use above 20 megawatts, while NewsRadio 570 WKBN reports the threshold at 5 megawatts. If signed by Governor Kathy Hochul, New York would become the first state to enact such a freeze.

The legislation also mandates:

- Local public hearings before data center construction

- A statewide environmental impact report within 18 months

- Greater transparency requirements on resource use

- Energy efficiency and renewable energy targets for existing data centers

State Senate Majority Leader Andrea Stewart-Cousins voiced support for the moratorium, describing it as an opportunity to develop comprehensive rules for data center operations, as reported by WKBN. After the moratorium period, stricter requirements including prevailing wage mandates and renewable energy usage targets by 2040 would be enforced.

The bill has drawn opposition from industry groups including the Data Center Coalition, the Business Council of New York State, and Tech:NYC. North Country Republican Assemblymember Scott Gray argued the moratorium would harm New York's economy, particularly upstate regions, according to Spectrum News. Governor Hochul has not yet indicated whether she will sign the bill, having previously stated that permitting should primarily be a local authority's responsibility.

Separately, a New York State Assemblyman is proposing a moratorium on data center development specifically in the Mid-Hudson region, according to Mid Hudson News. An area attorney is also weighing in on the implications of the statewide moratorium, as reported by Audacy.

New York State Gets One Step Closer to a Data Center Moratorium

Inside Climate News

NY State Passes 1-Year Moratorium on Data Center Permits

NewsRadio 570 WKBN

State legislature up against clock as 1-year data center moratorium moves forward

Spectrum News

Assemblyman wants moratorium on data centers

Mid Hudson News

What year long moratorium on data centers could mean

Audacy

Niagara Falls City Council Approves Data Center Settlement Amid Community Opposition

The Niagara Falls City Council approved plans for a data center campus proposed by Niagara Falls Redevelopment (NFR), resolving years of litigation over a disputed property, according to Spectrum News. The decision, reached during a contentious meeting, also settled eminent domain proceedings involving a parcel on Falls Street near the Seneca Niagara Casino.

Under the agreement, NFR will proceed with its $1.5 billion digital campus and donate a portion of land for the city's $1 million Centennial Park proposal, with the city reimbursing NFR $4 million for that land, as reported by WGRZ. The settlement also clears the path for a $210 million arena, according to WKBW. A timeline for the data center project's commencement has not been established.

Some community members raised concerns about environmental impacts, including water contamination, potential health risks, and effects on wildlife, according to Spectrum News.

Contentious Niagara Falls City Council meeting leads to approval of new data center

Spectrum News

Niagara Falls City Council approves settlement with NFR, clears path for construction of new arena and possibly a data center

WGRZ

Niagara Falls and NFR agree on settlement for city-owned arena and NFR data center

WKBW TV | Buffalo, NY

Niagara Falls council approves settlement for data center

WIVBTV

O'Leary Agrees to Slash Box Elder County Data Center Footprint After Political Pressure

Kevin O'Leary has agreed to significantly reduce the footprint of the proposed Stratos Hyperscale Data Center project in Box Elder County, Utah, following demands from Utah Senate President Stuart Adams. According to the Standard-Examiner, the concessions include a 75% reduction in the proposed project area, from 40,000 acres to approximately 10,000 acres of built data center and industrial footprint.

Specifically, O'Leary committed to removing:

- A 19,430-acre site in and around the Locomotive Springs area, acknowledged as important migratory bird habitat

- A 620-acre parcel near I-84

- Retaining a 20,000-acre site in Hansel Valley, with roughly 10,000 acres for the data center and power facilities and 10,000 acres preserved as open space

As reported by KSL NewsRadio, the project is intended to host up to 9 gigawatts of power generation. FOX 13 News Utah reports that updated diagrams also show a 17% reduction in power consumption.

O'Leary also agreed to additional commitments including treating excess water for the Great Salt Lake, heat-capture technology, independent scientific and engineering reviews, and a public-facing project information website, according to the Standard-Examiner. Senator Adams praised the concessions and emphasized the project remains in early stages and must undergo full permitting and environmental review.

The project still faces organized opposition. As reported by KSL NewsRadio, opponents have filed a lawsuit challenging Box Elder County commissioners' May 4 decision to approve resolutions 26-11 and 26-12, which allowed the project to advance. FOX 13 reports that developers admitted to issues with the project's initial rollout.

Changing the plan: O’Leary concedes to Utah Senate President Sen. Stuart Adams’ demands on data center

Standard-Examiner

Kevin O’Leary agrees to cut Box Elder County data center project area in half

KSL NewsRadio

New 'Wonder Valley' data center diagrams reveal 17% power reduction, half the original acreage

FOX 13 News Utah

O'Leary agrees to dramatically reduce Stratos Project data center footprint

FOX 13 News Utah

Congress Grapples With Multiple Data Center Bills Amid National Debate

The national debate over data centers' electricity consumption and community impact has escalated to Capitol Hill, with several legislative proposals now under consideration, according to the Franklin Favorite. Senators Josh Hawley (R-Mo.) and Richard Blumenthal (D-Conn.) are advocating legislation to prevent data centers from increasing consumer utility rates, while Senator Bernie Sanders (I-Vt.) and Representative Alexandria Ocasio-Cortez (D-N.Y.) have introduced a bill for a moratorium on new AI data centers until national safeguards are established.

Additional proposals include:

- The Energy Bills Relief Act

- The GRID Act

- The Power for the People Act

- The Fair Allocation of Interstate Rates Act

- Legislation from Rep. Greg Landsman (D-Ohio) to ensure data centers fully cover energy and infrastructure costs

Representative Gary Palmer (R-Ala.) called the proposed moratorium "suicidal for the country." The EPA has also proposed changes to streamline the data center permitting process, framed by the Trump administration as supporting AI infrastructure development. The data center industry faces intense lobbying pressure from the electric manufacturing and equipment sector, including firms like Microsoft and Oracle.

Data center battles started in the states, Congress under siege

Franklin Favorite

Seattle Data Center Moratorium Advances; Digital Realty Proposes Downtown Project

The Seattle City Council's Land Use and Sustainability Committee has unanimously approved a proposed one-year moratorium on new large-scale data centers consuming more than 20 megawatts of power, according to The Center Square. The full council is expected to vote on the measure as early as June 9, per KIRO 7, or June 16 according to The Center Square.

Mayor Katie Wilson initially proposed the ban in April after four companies inquired about building large-scale data centers within Seattle City Light's service territory; two have since withdrawn, as reported by the New York Post. The mayor's office reported over 54,000 messages expressing concern about potential data center developments, according to The Seattle Times.

During a committee hearing, Amazon engineers testified against their employer's data center expansion strategy, criticizing the company's estimated $200 billion allocation to AI and data center capital expenditures alongside approximately 30,000 recent corporate layoffs, as reported by the New York Post. Amazon stated it has no current plans to build data centers within Seattle city limits.

Meanwhile, Digital Realty has filed permit applications for a six-story, approximately 380,000-square-foot co-location data center at Third Avenue and Virginia Street in downtown Seattle, according to The Seattle Times. The project, named Block 50, is planned for a 2027 start. As reported by KIRO 7, the project could proceed if permits are secured before the moratorium takes effect. Digital Realty has characterized the facility as "network-dense" rather than an AI data center.

Seattle headed towards ban on large data centers

The Center Square

Data center planned for downtown Seattle in spite of looming moratorium

KIRO 7 News Seattle

Here's where Seattle could see a new downtown data center

The Seattle Times

Seattle City Council approves one-year moratorium on large-scale data center development

New York Post

Amazon workers back Seattle AI data center moratorium amid layoffs

qz.com

Michigan Governor Rejects Data Center Moratorium Proposals as Legislation Advances

Michigan Governor Gretchen Whitmer has rejected legislative proposals to pause data center authorizations, according to 13 ON YOUR SIDE. This comes after State Senator Jim Runestad (R-White Lake) introduced three bills — Senate Bills 1018, 1019, and 1020 — proposing a one-year statewide moratorium on hyperscale data center development, as reported by WJRT ABC12.

Sen. Runestad cited concerns about energy rate increases, environmental impacts, and the destruction of farmland. He referenced a Detroit Regional Chamber poll indicating declining public opinion on data centers in Michigan, per WJRT ABC12. The legislation was introduced shortly after Governor Whitmer and OpenAI CEO Sam Altman broke ground on a $16 billion data center project by Oracle and OpenAI in Saline Township, Washtenaw County.

At the Mackinac Policy Conference, business leaders including Walbridge construction company CEO John Rakolta warned Michigan risks losing significant data center investment, according to The News-Herald. Rakolta's firm is involved in the $7 billion Saline Township project. Some Michigan communities have already enacted local moratoriums on data center construction.

Sen. Runestad indicated willingness to negotiate the moratorium's scope, potentially exempting projects already underway, but acknowledged political challenges given the governor's position, as reported by WPBN.

Michigan lawmaker proposes moratorium on data centers statewide

WJRT ABC12

Gov. Whitmer says 'No' to lawmakers' proposals for pause on data center authorizations

13 ON YOUR SIDE

Michigan Governor Whitmer rejects data center moratorium proposals