What's Happening?
New York state lawmakers have introduced a bill, S.9144, to impose a three-year moratorium on permits for new data centers exceeding 20 megawatts. The legislation, introduced by Senators Liz Krueger and Kristen Gonzalez, along with Assemblymember Anna
Kelles, aims to evaluate the environmental effects of these facilities and protect electricity rates for residential customers. The bill requires the Department of Environmental Conservation to produce a comprehensive environmental impact statement covering energy use, water resources, air quality, greenhouse gas emissions, and electronic waste. Additionally, the Public Service Commission is tasked with reporting on cost impacts to ratepayers and ensuring that data center developers bear those costs. The bill was referred to the Senate Environmental Conservation Committee on February 6, 2026.
Why It's Important?
The proposed moratorium reflects growing concerns about the environmental and economic impacts of large data centers, which are expanding rapidly due to increased demand for AI and cloud computing. These facilities are known to strain the electrical grid and contribute to rising electricity rates, which increased by 13% in 2025. The legislation seeks to align the growth of tech infrastructure with environmental and public interests by ensuring that developers are accountable for their environmental footprint. This move positions New York as a leader in scrutinizing the environmental impact of tech infrastructure, with potential implications for similar measures in other states.
What's Next?
If passed, the bill will halt the issuance of permits for large data centers for at least three years, allowing time for comprehensive environmental assessments. The outcome of this legislation could influence similar efforts in other states, as New York is the sixth state to introduce such restrictions in 2026. The bill's progress will be closely watched by environmental groups, tech companies, and policymakers, as it tests the balance between technological growth and environmental sustainability.
