NEW YORK, NY— New York lawmakers moved this week toward a one-year pause on new large-scale data center development, advancing legislation that would temporarily block permits for projects above 20 megawatts as officials weigh energy demand, grid reliability, and rising electricity costs tied to artificial intelligence infrastructure.
The bill, S10642/A11560, sponsored by state Sen. Kristen Gonzalez and Assemblymember Didi Barrett, cleared procedural steps in Albany and is expected to reach floor votes before lawmakers adjourn for the year.
“The one year moratorium gives us the time and space to properly promulgate rules and plan for what our energy future can look like, where we are not only protecting our energy grid, but we’re protecting our utility rates,” Gonzalez said.
Assembly Speaker Carl Heastie said the chamber will pass the measure this week.
The proposal would direct the Department of Environmental Conservation to halt permits for qualifying data center projects while regulators develop new rules. It also orders a statewide environmental impact report within 18 months covering air, water, soil, noise, farmland use and electronic waste.
The bill also directs the state Public Service Commission to set new requirements for data centers, including a separate electricity rate structure, energy efficiency standards, renewable energy requirements, and labor standards.
Gov. Kathy Hochul has previously pushed for rules requiring data centers to cover their full energy costs to avoid burdening ratepayers.
The Digital Power Network, which represents Bitcoin miners and digital infrastructure companies, opposed the bill.
“These provisions would destabilize the regulatory environment for advanced computing infrastructure at the very moment such infrastructure is a strategic national priority,” the group wrote in an opposition memo.
Lawmakers are expected to leave Albany after June 4. Kathy Hochul has signaled resistance to a statewide pause and will review the legislation once it reaches her desk, according to her office.
60 Hudson Street
60 Hudson St., New York, NY 10013
One of the world's most important telecommunications hotels, housing hundreds of network providers, cloud connections, and internet exchanges.
Digital Realty New York JFK10
111 8th Ave., New York, NY 10011
A major internet and data infrastructure hub owned by Google, serving as a key interconnection point in Manhattan.
New York JFK13
32 Avenue of the Americas, New York, NY 10013
Historic telecommunications facility hosting carriers, cloud providers, and network infrastructure.
Telehouse New York Chelsea
85 10th Ave., New York, NY 10011
Carrier-neutral colocation facility and internet exchange point serving financial, media, and cloud customers.
Digital Realty 111 8th Avenue
111 8th Ave., New York, NY 10011
Colocation and connectivity facility within one of Manhattan's largest technology buildings.
Sign up for free local newsletters and alerts for the
New York City, NY Patch
Patch.com is the nationwide leader in hyperlocal news.
Visit Patch.com to find your town today.