New York State Assembly announces bill to impose three-year moratorium on data center construction
The New York State Assembly has introduced a bill that would put a stop to the proliferation of data centers and allow time for the construction of new ones to be assessed, potentially banning them for three years.
NY State Senate Bill 2025-S9144
New York Democrats push for data center construction ban
New York Democrats propose sweeping pause on data center construction - POLITICO
https://www.politico.com/news/2026/02/06/new-york-democrats-propose-sweeping-pause-on-data-center-construction-00768090
The bill, S9144, introduced by Democratic Rep. Liz Krueger and others, would prohibit state or local governments from issuing permits for new data centers until a rigorous review by a state agency is completed. The ban would apply to facilities designed to use more than 20 megawatts of power for at least three years and 90 days.
During this period, the New York State Department of Environmental Conservation must investigate the environmental impact of data centers on multiple factors, such as water usage, greenhouse gas emissions, noise pollution, and electricity costs, and formulate new regulations. The purpose of this bill is to put a stop to the endless development of data centers and buy time to devise regulations that are not keeping up with the current situation.
'Now is the time to hit the pause button and create time to develop strong data center policy and prevent the AI bubble from bursting and imposing huge costs on New York utility customers,' said Senator Krueger.
Krueger and his colleagues argue that 56% of data center electricity consumption comes from fossil fuels, that the average data center's carbon dioxide emissions are 48% higher than the national average, and that the current pace of development could result in up to 5 million tons of e-waste generated annually by 2030, threatening the state's climate goals.
American politicians are grappling with the massive electricity demands that AI will create, with Pennsylvania's Democratic governor, Josh Shapiro, reversing his vocal support for the industry to propose new regulations to protect residents from rising energy costs. Florida governor Ron DeSantis has also proposed regulations, and Vermont Senator Bernie Sanders has called for a nationwide moratorium.
In New York, Governor Kathy Hawkle supports requiring data centers to generate their own electricity or pay additional costs to prevent additional costs for residents, but she also sees the potential benefits of AI and is funding university-based AI research initiatives and building new data centers.
Data center construction moratoriums have also been introduced in Maryland, Georgia, Oklahoma, Virginia, and Vermont, and the Sterling Heights, Michigan, City Council just unanimously passed a resolution halting new data center construction for up to 12 months, effective February 3, 2026.
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