New York lawmakers are working to approve a statewide moratorium on new large-scale data centers, despite opposition from Governor Kathy Hochul, who believes such decisions should be made at the local level. The proposed legislation, introduced by Democratic state Senator Kristen Gonzalez and Assemblywoman Didi Barrett, aims to impose a one-year pause on approvals while state regulators assess the environmental and energy impacts of these facilities. A vote in the state Senate is expected this week, with indications that the Assembly will also support the measure.
If enacted, this would be the first statewide moratorium of its kind in the U.S., responding to concerns about the rapid growth of data centers driven by increasing demand for artificial intelligence and cloud computing. Gonzalez stated that the moratorium would allow time to develop regulations that protect the energy grid and utility rates. Environmental groups and lawmakers have expressed worries that new data center projects could strain New York's power grid and hinder clean energy goals.
Hochul has expressed skepticism about the need for a statewide ban, emphasizing that land use decisions should be made by local governments. The current proposal is a reduced version of earlier efforts that sought a three-year moratorium. Under the bill, the state Department of Environmental Conservation would need to prepare a comprehensive environmental impact report on data centers within 18 months. Critics of data centers have raised concerns about their significant resource demands, while supporters highlight the potential economic benefits.
