State likely to pass data center moratorium
New York State is poised to pass a one-year moratorium on data center permits before the legislative session ends. This legislation would also impose new requirements on data centers for energy efficiency, renewable energy use, and host community benefits. The moratorium could impact plans for a potential data center conversion at the former NRG power plant in Dunkirk.
New York Assembly Speaker Carl Heastie announced that the state legislature is likely to pass a one-year moratorium on data center permits this week, before the legislative session concludes. The proposed legislation (A.11560/S.10642) would also mandate utilities to create an independent service classification for large data centers, set energy efficiency targets, require benefits for host communities, and establish labor standards for construction.
The moratorium could delay a potential data center conversion at the former NRG power plant in Dunkirk, Chautauqua County, which was recently sold to Genover. A 2021 study for Dunkirk and Chautauqua County had identified a data center as a preferred reuse concept for the site.
Spearheaded by Assemblywoman Didi Barrett and Senator Jessica Gonzalez, the bill also requires the Department of Environmental Conservation to prepare an environmental impact report on data center development. Furthermore, it mandates that data centers derive increasing percentages of their electricity from renewable sources and provide community benefits, citing concerns over data centers' disproportionate fossil fuel use and significant water consumption for cooling.