New York Bill Proposes Three-Year Moratorium on New Data Centers
New York Senators Liz Krueger and Kristen Gonzales introduced a bill to halt new data center permits for at least three years. The pause aims to assess environmental impacts and update regulations. The bill mandates environmental studies on water, electricity, and gas consumption by data centers. Concerns have risen over the rapid growth of data centers, driven by generative AI, with electricity rates reportedly increasing by 13% in 2025 due to their expansion. New York is the sixth state in 2023 to propose such legislation.
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New York Senators Liz Krueger and Kristen Gonzales have introduced a bill to block permits for new data centers for at least three years and ninety days. This moratorium is intended to allow authorities to evaluate the environmental impact of data centers and to update relevant regulations.
The bill requires the Department of Environmental Conservation and the Public Service Commission to prepare studies on data center consumption of water, electricity, and gas, and their effects on consumer costs. Reports indicate a national increase of 13% in residential electricity rates in 2025, attributed to data center development. New York is the sixth U.S. state to propose a bill aimed at curbing data center expansion this year.
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