New York State Gets One Step Closer to a Data Center Moratorium
The New York Legislature has passed a bill proposing a one-year moratorium on data center permits statewide, which would be a national first if signed into law by Gov. Kathy Hochul. The bill, called the Responsible Data Center Development Act, also includes requirements for public hearings, environmental impact reports, and increased use of renewable energy. This action comes amidst growing local opposition to data center developments across the state.
The New York Legislature has passed the Responsible Data Center Development Act, a bill that would impose a 12-month moratorium on data center permits for facilities with peak energy use above 20 megawatts. If signed by Gov. Kathy Hochul, New York would become the first state in the nation to enact such a freeze. Hochul, however, has previously indicated a preference for leaving such decisions to municipalities.
State Sen. Kristen Gonzalez, the bill's Democratic sponsor, emphasized the need for appropriate infrastructure and processes to protect communities from rising utility bills and safeguard environmental resources. The legislation also mandates local public hearings before construction, a statewide data center environmental impact report within 18 months of enactment, requirements for greater transparency on resource use, and efforts towards energy efficiency and increasing renewable energy consumption for existing data centers. The bill has faced opposition from industry groups like the Data Center Coalition and the Business Council of New York State, who warn of discouraging investment and adverse economic impacts. Ed Nadeau, president of the New York State Pipe Trades Association, expressed concerns about potential job losses during the moratorium.
Local opposition to data centers is growing, particularly in upstate communities like Niagara, Erie counties, and the town of Lansing. William Rivera, town supervisor of Oneonta, successfully passed a local 12-month moratorium after a proposed data center by Eco-Yotta Inc. sought to rezone 150 acres of farmland. Rivera highlighted the challenges local governments face in accessing information from developers, a transparency issue the state bill aims to address.
New York’s electricity grid operator has warned about data centers straining the grid and complicating efforts to retire gas-fired power plants. Bridge Rauch of the Clean Air Coalition of Western New York noted that modern hyperscale data centers represent an unregulated industrial sector, advocating for state and local regulations, which this bill attempts to provide.