New York Lawmakers Approve One-Year Ban on New Data Centers
▼ Summary
– The New York State legislature passed a one-year moratorium on new large data centers, the first statewide ban of its kind, pending Governor Kathy Hochul’s signature.
– The bill aims to give policymakers time to study data centers’ impact on the environment and energy prices, requiring an impact report and public hearings before approval.
– Hochul has until December to decide whether to sign or veto the bill, with no indication of her decision yet.
– The moratorium faces pushback from industry groups like the Long Island Association, which argues it would damage the state’s economy.
– Similar legislation in Maine was vetoed earlier this year, and New York is currently reviewing 24 data center proposals totaling over 9,000 megawatts.
The New York State Legislature has approved a one-year moratorium on new large data centers, marking what would be the first statewide ban of its kind if Governor Kathy Hochul signs it into law. The bill is designed to give policymakers breathing room to study how these massive facilities affect energy prices, the environment, and local communities.
Sponsors of the legislation argue that the pause is necessary to fully understand the scale of the impact. Under the bill, the state’s environmental agency must produce a report analyzing how much electricity, water, and land large data centers consume, along with the pollution they generate. Any company seeking to build a facility with a peak demand of at least 20 megawatts would also be required to hold and pay for a public hearing at least three months before the project can move forward. Governor Hochul has not yet indicated whether she will sign the measure, but she has until December to make a decision, according to Bloomberg Government.
The push for such a ban reflects a growing national backlash. Polls show that most Americans oppose having data centers in their neighborhoods, and contentious public meetings across the country have turned the issue into a bipartisan flashpoint. Earlier this year, Maine’s legislature passed a similar bill that would have halted new data centers until late 2027, but Democratic Governor Janet Mills vetoed it because it did not exempt a previously planned project, as reported by The New York Times. In New York, the state’s independent grid operator is currently reviewing 24 data center proposals totaling more than 9,000 megawatts, according to News10 ABC. A proposed 180-megawatt project in Albany has already sparked concern among residents.
The approved moratorium is shorter than the three-year ban originally proposed, according to Politico. Still, industry groups are pushing back. Stacey Sikes, acting president and CEO of the Long Island Association, told Politico that a blanket pause would be “damaging to the state’s economy.” She argued that a case-by-case review would be more effective than an outright ban, which could block beneficial projects.
Hochul spokesperson Kristin Devoe told The Verge, “The Governor will review the bill.”
(Source: The Verge)
