NY State passes moratorium and other regulations on data centers

The New York State Legislature has passed the Responsible Data Center Development Act (S.10642/A.11560), an omnibus bill that includes a one-year moratorium on the development of large data centers with a peak demand of 20 megawatts or more. The legislation, which now awaits Governor Kathy Hochul's signature or veto, also establishes new regulations such as energy efficiency standards, labor standards for construction, a public comment period for municipal approvals, and a dedicated water and energy rate class for large data centers.

State Sen. Kristen Gonzalez and Assembly Member Didi Barrett, key sponsors, emphasized the bill's intent to mitigate the strain hyper-scale data centers place on the energy grid, rising consumer utility costs, water consumption, and air pollution. Barrett highlighted that at least 30 large data centers are currently seeking interconnection through NYISO, collectively demanding power equivalent to all of New York City. The bill's provisions were partly informed by a public hearing held by the Energy Committee, chaired by Barrett.

Lawmakers from Sullivan County, including Assembly Member Paula Kay and Legislator Catherine Scott, expressed strong support for the measures, unanimously passing resolutions endorsing related legislation. Scott underscored concerns about utility ratepayers struggling with electric bills and the importance of financial and environmental sustainability. Proponents believe the bill's timely and common-sense approach to regulating data center development will ensure its passage into law, protecting natural resources and preventing ratepayers from unfairly subsidizing industry costs.