New York to adopt nation-first moratorium on data centers
New York state lawmakers are planning to pass a one-year statewide moratorium on new data center projects, which would be the first of its kind in the nation. The proposed bill requires an environmental impact study on data center development and mandates a shift towards renewable energy sources for these facilities. The legislation is a compromise, as advocates initially sought a three-year ban, and it faces opposition from industry groups concerned about job losses and regulatory instability.
New York state lawmakers are poised to enact a one-year moratorium on new data center projects across the state before the current legislative session concludes. If approved and signed by Governor Kathy Hochul, this would establish the nation's first statewide moratorium on such developments.
The proposed legislation, described as an omnibus bill by Assembly Speaker Carl Heastie, is a compromise following advocacy efforts for a three-year ban. It would pause large data center projects, necessitate a statewide environmental impact study on data center development, and require future facilities to predominantly rely on renewable energy sources while contributing to their local communities.
Advocates, including Sen. Kristen Gonzalez (D-Queens), have rallied at the New York State Capitol, arguing for a pause to allow for proper energy planning and environmental protection. However, the proposal faces a strong lobbying push from opponents, such as Smythe Anderson, executive director of the Digital Power Network (a coalition of bitcoin miners and digital infrastructure leaders), who argue the moratorium would deter investment, cost jobs, and destabilize the existing regulatory environment. Governor Hochul has indicated a commitment to ensuring data centers are self-sustaining and do not burden local ratepayers, aligning with the intent of the proposed bill.