State lawmakers pass one-year moratorium on large data centers
New York state lawmakers have passed a one-year moratorium on the permitting of large data centers (20 megawatts or larger), pending Governor Kathy Hochul's signature. The legislation, named the "Responsible Data Center Development Act," addresses concerns over electricity strain, increased water consumption, and potential fossil fuel usage. It requires the state's Department of Environmental Conservation to conduct an environmental impact report on data center development across the state.
New York state lawmakers have passed a one-year moratorium on the permitting of data centers 20 megawatts or larger, with the legislation now awaiting Governor Kathy Hochul's signature. Known as the "Responsible Data Center Development Act," the bill has drawn mixed reactions, receiving concern from industry representatives and praise from environmental groups like NY Renews, while Adirondack Park lawmakers expressed varied opinions.
The act aims to address issues such as rising electricity rates, strain on the electric grid, increased fossil fuel usage, and water consumption associated with data center development. It mandates the state Department of Environmental Conservation (DEC) to conduct a comprehensive environmental impact report on data center development within 18 months of the bill becoming law. The legislation also proposes amendments to state energy law, requiring data centers 5-megawatts or larger to meet renewable energy benchmarks, aiming for at least 90% renewable electricity by 2040.
A vague proposal for a data center in Dresden, Washington County, by Alternative Green Investment Florida LLC (part of the European Transworld Solar Group), was mentioned as a potential project that could be affected. The company clarified that their current focus is on a battery energy storage system, with a data center only shown as a possible future area of interest. Meanwhile, the Dresden town board is currently without a quorum, preventing it from holding public hearings or zoning considerations. Assemblymember Matthew Simpson, R-Adirondack, criticized parts of the act, calling it a "Trojan horse" for renewable energy expansion that could jeopardize green spaces.
Industry stakeholders, represented by the Digital Power Network, expressed opposition, citing concerns about regulatory destabilization and unquantifiable cost attribution. Conversely, Stephan Edel, Executive Director of NY Renews, urged Governor Hochul to sign the bill, arguing that unregulated data centers pose significant harm to communities, particularly rural and Indigenous areas.