State legislature up against clock as 1-year data center moratorium moves forward
The New York State Legislature has passed a one-year moratorium on new data center construction, citing concerns over water and energy usage. The measure, part of a larger package regulating the tech sector, now awaits Governor Kathy Hochul's signature to become law. The pause aims to allow the state to gather data and craft future regulations.
New York state lawmakers in Albany passed a first-in-the-nation one-year moratorium on new data center construction, as part of an omnibus package designed to regulate the tech industry, with a focus on artificial intelligence. The Democrat-led legislature approved the measure on its final scheduled session day, though the Assembly is expected to regroup for an additional day.
Senate Majority Leader Andrea Stewart-Cousins stated the pause is intended to allow the state to gather data and develop regulations for future development, addressing concerns about water and energy usage. She emphasized that the state is not halting development entirely but seeking to understand its full impact.
The moratorium has faced opposition from minority Republicans, as well as various business, tech, and construction groups. North Country Republican Assemblymember Scott Gray argued that the moratorium would harm New York's economy and disadvantage upstate regions, calling it a sign that New York is "out to lunch" for a year. The bill now requires Governor Kathy Hochul's signature to become law.
Simultaneously, lawmakers continued debates on a separate bill package to regulate surveillance pricing, targeting the use of AI and algorithmic tools for customized consumer pricing, with its fate uncertain due to business group concerns.