Legislature moves to slow growth of data centers in NYS
The New York State Legislature is moving to pass an omnibus bill that includes a one-year moratorium on data center siting and mandates statewide environmental impact hearings. The legislation also requires "host community benefits" packages and renewable energy sourcing for data centers, though Governor Kathy Hochul's stance on signing the bill is currently unclear.
The New York State Legislature is on the verge of approving a comprehensive bill aimed at regulating the rapid expansion of data centers across the state. The legislation, expected to pass both the Senate and Assembly before the current session ends, includes a one-year moratorium on new data center sitings, pending statewide environmental impact hearings.
Additionally, the bill mandates that data centers provide "host community benefits" packages and source at least one-third of their energy from renewable sources. It also proposes reclassifying data centers for water and energy consumption charges. While the bill has bipartisan support among lawmakers, including Assembly Speaker Carl Heastie (D-Bronx) and Assemb. Anna Kelles (D-Ithaca), Governor Kathy Hochul's position on signing it remains uncertain.
The statewide initiative comes amidst a significant increase in data center proposals in New York, with current requests for 11 gigawatts of energy—nearly double the state's current household usage. Local communities, such as Brookhaven, are also considering their own moratoriums, with Town Supervisor Dan Panico advocating for a regional approach to siting challenges. New York is one of 14 states currently exploring similar legislative measures to manage data center growth.