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The New York State Legislature passed a one-year moratorium on new large-scale data centers. It would be the first statewide ban if Democratic Gov. Kathy Hochul signs it into law.

New York State Assembly passes one-year ban on new data centers

This could be the first ban in the state.

Lawmakers sponsoring the bill said it was intended to give policymakers time to understand the impact large data centers have on the environment and energy prices. It directs state environmental agencies to prepare impact reports assessing how much electricity, water and land data centers use and the pollution they create. Additionally, companies seeking to build large data centers, defined as those with peak demand of 20 megawatts or more, must hold public hearings and raise financing at least three months before receiving project approval. Hochul has not said whether he will sign the bill and will have until December to decide whether to sign or reject it, according to the Bloomberg administration.

We need companies looking to build large-scale data centers to hold public hearings and raise funds.

Surveys show that most Americans are opposed to putting data centers in their communities, and heated public meetings across the country show that this is a galvanizing issue across the political spectrum. According to The New York Times, Maine's state legislature earlier this year passed a bill banning new data centers until the end of 2027, but Democratic Gov. Janet Mills vetoed it because it failed to include exemptions for previously planned projects. According to News10 ABC, the New York Independent System Operator, a nonpartisan group tasked with maintaining grid reliability, is currently reviewing 24 data center proposals totaling more than 9,000 megawatts and said the proposed 180-megawatt project in Albany has raised concerns from residents.

The New York bill has a shorter grace period than the previously introduced three-year proposal, according to Politico. But even the one-year suspension drew backlash from industry groups. “If we put in a blanket moratorium without a case-by-case review, the moratorium will harm the state’s economy overall because it will prevent the state from pursuing data center projects that will actually benefit our economy,” Stacey Sikes, acting president and CEO of the Long Island Association business group, told Politico.

“The governor will review the bill,” Hochul spokeswoman Kristin Devoe told The Verge.

Updated June 5: Added comment from Governor Hochul's spokesperson.