Legislature moves ahead on plan to slow data centers
New York lawmakers are advancing legislation that would impose a one-year statewide moratorium on data center development, potentially making it the first state to do so. The bill, approved by the Assembly and awaiting a Senate vote, also mandates new regulations concerning host community benefits, renewable energy use, and reclassification of utility charges. This action responds to concerns from local governments and residents about the impact of rapid data center growth on energy, water, and air resources.
New York state lawmakers have initiated voting on an "omnibus" bill aimed at slowing the rapid development of massive data centers across the state. The legislation, which began its passage through the Assembly on Thursday, would impose a one-year moratorium on new data center construction and mandate the establishment of new statewide regulations. Assembly Democrats, including Assemb. Didi Barrett (D-Claverack), chairwoman of the Assembly Energy Committee, emphasized the need for a pause to address growing concerns from local governments and residents regarding data centers' impact on energy, water, and air resources, particularly exacerbated by artificial intelligence expansion.
The Assembly approved the measure, and the Democrat-led Senate is expected to vote on it subsequently. If enacted, New York would be the first state to implement such a moratorium, according to watchdog group Good Jobs First, although other states like Maine have considered similar measures. Governor Kathy Hochul has indicated interest in updating power rate laws to account for high energy usage and preventing data centers from draining local resources, stating the "status quo can't continue.
Opposition to the moratorium has emerged from building and construction unions, traditionally Democratic allies, who argue it would lead to job losses and deter data center development. Republican lawmakers echoed these concerns, contending that the state is ceding job development opportunities to other states. Aside from the moratorium, the bill also requires data centers to provide "host community benefits" packages, source at least one-third of their energy from renewables, and reclassifies them for utility charge calculations. It further directs the state Department of Environmental Conservation to conduct statewide hearings and propose additional regulations within 18 months.