New York eyes first-in-nation moratorium on data center development
New York state lawmakers are planning to pass a one-year moratorium on new large data center projects before the legislative session ends. The proposed bill would require environmental impact studies and mandate reliance on renewable energy, with Governor Hochul emphasizing community benefits and sustainable power sources. This could be the first statewide data center moratorium in the US.
New York state lawmakers are poised to approve a one-year moratorium on new large data center developments, a move that would make New York the first state in the nation to enact such a freeze if signed into law by Governor Kathy Hochul. The legislation, a compromise after advocates sought a three-year ban, aims to address concerns about data centers' environmental impact and energy consumption. It mandates environmental studies and requires new facilities to primarily use renewable energy sources while also contributing to their host communities.
Assembly Speaker Carl Heastie described the bill as an "omnibus" measure developed through discussions with various stakeholders. The proposal comes amidst a national trend, with government watchdog Good Jobs First reporting that at least a dozen states are considering similar moratoriums. Maine's legislature passed a moratorium in April, but it was vetoed by Governor Janet Mills.
Senator Kristen Gonzalez, a Queens Democrat and proponent, emphasized the need for a pause to plan for New York's energy future and protect its environment. Conversely, opponents, including Smythe Anderson of the Digital Power Network, argue that the moratorium would harm job creation and signal that New York is not "open for business," contending that sufficient regulatory protections already exist. Governor Hochul, while not commenting directly on the pending legislation, indicated her support for measures that ensure communities benefit from data center operations and that power sources are not drained.