Escalation: New York Legislature Passes Data Center Moratorium

Both houses passed the Responsible Data Center Development Act, a one-year pause on permits for new data centers with peak power use of 20 megawatts or more. The moratorium covers siting, construction, and the start of operations, and it requires a local public hearing before any such facility is built.

The measure orders a statewide environmental impact report by the Department of Environmental Conservation, due about 18 months after enactment. The study will tally existing data centers and their capacity, track active proposals, analyze electricity use and sources and effects on monthly utility bills, and detail water use and discharge and where that water comes from.

The omnibus bill also creates a separate electric and water rate category for facilities over 20 megawatts, requires operators above that size to fund investments in host communities, and phases in requirements to source power from renewables through on-site generation or long-term contracts. It sets construction labor standards for projects over 5 megawatts, including prevailing wage, apprenticeships, and U.S.-made iron and steel. Lawmakers cut the proposed pause from three years to one year before passage, and the bill now heads to Gov. Kathy Hochul, who has favored leaving siting decisions to municipalities.

AI-synthesized from multiple reported sources