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

Lawmakers in New York have put forward a bill aimed at establishing a three-year moratorium on the permits necessary for the construction and operation of new data centers. Although the future of this legislation remains uncertain, it marks New York as the sixth state to consider a pause on data center developments. As technology companies increasingly invest in building AI infrastructure, concerns have arisen from both sides of the political aisle regarding the potential repercussions these data centers could have on local communities. Reports indicate that the surge in data centers is linked to rising electricity costs for residents. Among the critics is progressive Senator Bernie Sanders, who has advocated for a nationwide moratorium. Conservative voices, such as Florida Governor Ron DeSantis, have also weighed in, arguing that data centers contribute to “higher energy bills just so some chatbot can corrupt some 13-year-old kid online.” An open letter to Congress, signed by over 230 environmental organizations including Food & Water Watch, Friends of the Earth, and Greenpeace, has called for a national halt on new data center constructions. Eric Weltman from Food & Water Watch noted to Wired that the New York bill, sponsored by Democratic Senator Liz Krueger and Assemblymember Anna Kelles, was inspired by their advocacy. Other states are echoing similar sentiments, with Democratic lawmakers in Georgia, Vermont, and Virginia proposing data center construction pauses, while Republican counterparts in Maryland and Oklahoma have introduced similar legislation. Senator Krueger expressed her concerns about New York's readiness for the influx of massive data centers, stating, “It’s time to hit the pause button, give ourselves some breathing room to adopt strong policies on data centers, and avoid getting caught in a bubble that will burst and leave New York utility customers footing a huge bill.” In a related initiative, Governor Kathy Hochul recently announced Energize NY Development, which aims to modernize the connection of large energy consumers like data centers to the power grid and ensure they contribute appropriately to energy costs.