New York lawmakers approve one-year ban on data centers
New York lawmakers have approved a one-year moratorium on permits for AI data centers requiring 20 megawatts or more of electricity. This legislation, which now goes to Gov. Kathy Hochul, responds to concerns about the regional power grid, environmental impact, and energy bills. It also includes provisions for new electricity rates, energy efficiency, renewable energy, and labor standards for large data centers.
New York lawmakers have approved a proposal to impose a one-year moratorium on permits for artificial intelligence data centers requiring 20 megawatts or more of electricity. The legislation, passed by the state Legislature, addresses concerns regarding the impact on the regional power grid, the environment, and existing high energy bills, making New York the first state to consider such a pause.
The bill, now awaiting review by Gov. Kathy Hochul, includes provisions for a new electricity rate for large data centers, energy efficiency standards, renewable energy requirements, and labor standards. State Sen. Kristen Gonzalez, the Democratic primary sponsor, championed the measure on the final day of the legislative session, asserting it would empower New Yorkers over "big tech" and prevent increased energy costs for constituents.
Environmental groups, including Food & Water Watch, praised the bill's passage and urged Gov. Hochul to sign it, highlighting the "monstrous, energy-intensive, water-sucking facilities" and their potential economic, environmental, and social threats. Emily Wurth, managing director of organizing at Food & Water Watch, stated that such data centers lead to skyrocketing electricity rates and threaten water stability.
Conversely, Republican lawmakers, high-tech companies, and unions, alongside economic development advocates, opposed the measure. They argued the changes were rushed with insufficient input, fearing job losses and an infringement on local governments' rights to make development agreements. The New York State Building and Construction Trades Council, for example, urged a vote against the measure, advocating for a collaborative approach to ensure economic development is not halted. A spokesperson for Gov. Hochul confirmed she would review the proposal, emphasizing her commitment to preventing data centers from depleting resources or increasing costs for New Yorkers.