New York State Legislators Approve Data Center Moratorium
New York state legislators have approved a yearlong, open-ended moratorium on large data center construction, which could become a first-in-the-nation ban. Critics argue the ban unfairly blames data centers for rising electricity costs, which they attribute to state policies, and note exemptions for public projects like the Empire AI initiative.
New York state legislators have approved what could be a first-in-the-nation yearlong, open-ended moratorium on large data center construction during the final days of the 2026 legislative session. Ken Girardin of City Journal criticized the new measure, warning that it would permanently increase the cost of deploying even relatively small facilities within New York.
Girardin contended that lawmakers are using data centers as an "energy boogeyman" to deflect blame for soaring residential electricity rates, which he attributes to state policymakers rather than data centers themselves. He also highlighted that the ban includes an exemption for "public research institutions" such as the state's 15-megawatt Empire AI project, suggesting that the legislators' concerns about data centers may be less genuine than they appear.