New York Legislature Passes One-Year Data Center Moratorium
New York legislators have passed a bill for a one-year moratorium on new data center construction, which now awaits Governor Kathy Hochul's signature. The proposed ban aims to provide time to assess the environmental and economic impacts of data centers, reflecting a shift in public opinion against such developments.
New York legislators have passed a bill imposing a one-year moratorium on new data center construction, marking the first statewide ban of its kind for AI infrastructure. The bill is awaiting Governor Kathy Hochul's signature, with lawmakers describing it as a temporary measure to evaluate the impacts of data centers on the environment, energy prices, and local jobs, rather than an outright prohibition.
If enacted, the legislation would require companies planning data centers with at least 20 megawatts of capacity to fund public hearings to gauge local resident sentiment. This move comes amid growing public opposition to data center developments across the U.S., with a similar proposal in Maine recently rejected by Governor Janet Mills.
Business groups, including the Long Island Association, represented by President and CEO Stacy Sikes, have voiced opposition to the moratorium. Sikes warned that a blanket ban could harm the state's economy by preventing potentially beneficial data center projects. Governor Hochul's office has remained non-committal, stating she will review the bill.