New York lawmakers propose a three-year pause on new data centers

Lawmakers in New York State have introduced legislation to impose a moratorium of at least three years on permits for the construction and operation of new data centres. Although the bill’s future remains unclear, Wired reports that New York has become at least the sixth U.S. state to explore the idea of temporarily halting new data centre development.

As major technology companies continue to pour record levels of investment into artificial intelligence infrastructure, concerns are growing across the political spectrum about how large-scale data centres could affect nearby communities. Both Democratic and Republican leaders have raised alarms, particularly around the strain these facilities may place on local power grids. Several studies have also connected the expansion of data centres to rising residential electricity costs.

Opposition to unchecked data centre growth includes prominent figures from both sides of the aisle. Progressive Senator Bernie Sanders has publicly called for a nationwide moratorium. At the same time, conservative Florida Governor Ron DeSantis has warned that data centres could drive up energy costs “just so some chatbot can corrupt some 13-year-old kid online.”

Environmental advocacy has also intensified. More than 230 environmental organisations — including Food & Water Watch, Friends of the Earth, and Greenpeace — recently signed an open letter urging Congress to implement a national pause on the construction of new data centres.

Eric Weltman of Food & Water Watch told Wired that the New York proposal — sponsored by State Senator Liz Krueger and Assemblymember Anna Kelles, both Democrats — originated from their advocacy efforts, calling it “our idea.” Similar data centre pause proposals have emerged in other states, with Democrats backing measures in Georgia, Vermont, and Virginia, and Republicans introducing comparable legislation in Maryland and Oklahoma.

According to Politico, Senator Krueger said New York is “completely unprepared” for the wave of “massive data centres” that are actively targeting the state.

“It’s time to hit the pause button, give ourselves some breathing room to adopt strong policies on data centres, and avoid getting caught in a bubble that will burst and leave New York utility customers footing a huge bill,” Krueger said.

Just last month, New York Governor Kathy Hochul unveiled a new initiative called Energise NY Development. Her office said the program is designed to modernise how large energy users — including data centres — connect to the power grid, while also ensuring that these facilities are required to “pay their fair share.”