New York passes first statewide moratorium on new large data centers

The New York State legislature passed a one-year moratorium on new large data centers, becoming the first statewide ban of its kind if Governor Kathy Hochul signs it into law. The bill targets data centers with a peak demand of at least 20 megawatts and requires companies planning such projects to hold and fund a public hearing at least three months before approval. It also directs the state's environmental agency to produce an impact report assessing electricity, water, land use, and pollution. The moratorium is shorter than an earlier three-year proposal, but has drawn pushback from business groups like the Long Island Association, which argues it could harm New York's economy by blocking beneficial projects. Hochul has not stated her position, and has until December to act.

This legislative action comes amid a national backlash against data center expansion driven by AI’s massive energy needs. Surveys show most Americans oppose data centers in their communities. Maine's legislature passed a similar ban earlier this year that was vetoed by the governor. The New York Independent System Operator is currently reviewing 24 data center proposals totaling over 9,000 megawatts — including a controversial 180 MW project in Albany. The moratorium is seen as a pause to study impacts on energy prices and the environment, but it also signals growing regulatory scrutiny of the tech industry’s infrastructure buildout. Industry advocates warn it could deter investment and slow AI development in the state.