New York State Legislature passes bill to put a one-year moratorium on data centers
New York lawmakers have passed the Responsible Data Center Development Act, a bill that would impose new environmental, utility, labor, and community benefit requirements on data centers. If signed by Governor Hochul, it would enact a one-year moratorium on certain new large data center permits and mandate a statewide environmental impact report. The bill also includes provisions for renewable energy standards, cost assignments, and public hearings.
The New York State Legislature has approved the Responsible Data Center Development Act, a significant bill aimed at regulating data center development across the state. The legislation, which passed both the state Senate and Assembly, now awaits action from Governor Kathy Hochul. If signed, New York would become the first state to implement such comprehensive regulations, taking effect immediately.
The bill's core provision is a one-year pause on new permits for large data centers, defined as facilities with a peak demand of 20 megawatts or more. This moratorium would not impact projects that received prior approvals or began construction before the law's enactment. Beyond the moratorium, the act mandates various requirements for large data center operators, including holding at least one in-person public hearing in host communities three months before state approval, providing 30 days' notice with project details, and outlining energy, water, and waste impacts.
Further environmental and economic stipulations are included in the bill. It directs the state Department of Environmental Conservation to conduct a statewide environmental impact report on data center development, assessing factors such as electricity and water use, land use, pollution, and impacts on disadvantaged and Indigenous communities. The legislation also seeks to prevent utility cost shifting by requiring electric, gas, water, and municipal systems to establish separate service classifications for large data centers, assigning infrastructure upgrade and commodity price increases directly to these facilities.
Additionally, the bill sets progressive renewable energy standards for data centers with a peak load of at least 5 megawatts, requiring one-third renewable energy by 2030, two-thirds by 2035, and 90% by 2040. It also mandates funding for host community benefit programs, which could cover initiatives like residential heat pumps, solar panels, and broadband upgrades, and includes labor standards for construction projects. Supporters of the bill argue it will protect communities, workers, and the environment, while opponents express concerns about potential cost increases and the discouragement of investment in New York, where some municipalities like Oneonta and Dryden have already implemented local moratoriums or bans.