New York state lawmakers have introduced a bill that would impose a moratorium of at least three years on permits tied to the construction and operation of new data centers. While the bill’s prospects are uncertain, reports indicate that New York is at least the sixth state to consider pausing construction of new data centers.
As tech companies plan to spend ever-increasing amounts of money to build AI infrastructure, both Democrats and Republicans have expressed concerns about the impact those data centers might have on surrounding communities. Studies have also linked data centers to increased home electricity bills.
Critics include progressive Senator Bernie Sanders, who has called for a national moratorium, as well as conservative Florida Governor Ron DeSantis, who said data centers will lead to higher energy bills for everyday people.
More than 230 environmental groups including Food & Water Watch, Friends of the Earth, and Greenpeace recently signed an open letter to Congress calling for a national moratorium on the construction of new data centers. Eric Weltman of Food & Water Watch noted that the New York bill was “our idea.” The bill is sponsored by state senator Liz Krueger and assemblymember Anna Kelles, both Democrats.
Data center pauses have also been proposed by Democrats in Georgia, Vermont, and Virginia, while Republicans sponsored similar bills in Maryland and Oklahoma.
Krueger described her state as completely unprepared for the massive data centers that are seeking to build there. She stated it is time to hit the pause button to adopt strong policies and avoid leaving New York utility customers footing a huge bill.
Separately, last month New York Governor Kathy Hochul announced a new initiative called Energize NY Development. Her office said this would modernize the way large energy users like data centers connect to the grid while also requiring them to pay their fair share.