New York Democrats Propose Three-Year Pause on Data Center Construction

New York Democratic lawmakers have introduced a bill that would impose a three-year moratorium on new data center construction and approvals, reports Politico. The proposed legislation aims to pause projects exceeding 20 megawatts while the state drafts regulations to manage potential environmental and energy cost impacts.

State Senator Liz Krueger and Assemblymember Anna Kelles are leading the effort, citing concerns that large-scale data centers could strain New York’s electric grid and increase utility rates for residents. The bill would direct the Department of Environmental Conservation to complete an environmental review and require the state’s utility regulator to issue rules preventing residential rate hikes tied to data center energy use.

Governor Kathy Hochul has previously supported measures requiring data centers to supply their own power or pay higher rates to offset potential costs. The proposed moratorium would make New York the largest state to consider such a pause, joining others like Maryland, Georgia, Oklahoma, Virginia, and Vermont that have introduced similar measures.

Environmental group Food and Water Watch has endorsed the bill, arguing that unchecked data center growth could drive up fossil fuel use. Labor unions, whose members often work on data center projects, are expected to oppose the measure. The proposal’s outcome in the state legislature remains uncertain.