New York bill would halt new AI data centers as Cayuga Lake project fuels growing backlash

A newly introduced bill, Senate Bill S9144, in the New York State Senate seeks to freeze construction of large-scale AI data centers across the state. Introduced by state Senators Liz Krueger and Kristen Gonzalez, the legislation proposes a statewide moratorium on permits for new data centers exceeding 20 megawatts until New York completes a comprehensive environmental and infrastructure review, and adopts new industry rules.

The bill highlights concerns about a potential surge in electricity demand from AI infrastructure, citing projections of over 9,000 megawatts in increased consumption. It also addresses data centers' reliance on fossil fuels, significant water usage, and contribution to rising electric rates. Key provisions include requiring the Department of Environmental Conservation to conduct a generic environmental impact statement, and mandating the Public Service Commission to study the impact on utility rates, potentially creating a separate rate classification for data centers. The legislation also proposes that data centers, not residential customers, bear the costs for new electric infrastructure necessitated by their demand.

This legislative effort coincides with escalating resident opposition in Tompkins County, specifically in the Town of Lansing, against a proposed 300-400 megawatt AI data center project by TeraWulf along Cayuga Lake. Opponents are mobilizing due to concerns over the project's potential to alter wetlands, increase runoff into Cayuga Lake, strain the electric grid, and consume up to 700,000 gallons of lake water daily for cooling. These local concerns closely mirror the issues raised in the statewide bill, reflecting a broader debate over the environmental and infrastructure burdens of AI expansion.