New York lawmakers passed a one-year ban on new data centers on their last official session day of the year on Thursday, June 4.
Different from a bill pushing for a three-year moratorium on data centers over 20 megawatts in New York, this legislation pauses the state Department of Environmental Conservation’s approval of new data centers for a single year so their environmental, economic and ratepayer impacts can be studied closer.
“As legislators, it is our job to help our state address an issue with a measured, thoughtful and comprehensive approach to ensure the responsible operation and development of data centers to protect our natural resources and make sure that ratepayers are not being asked to unfairly subsidize the cost, the economic as well as environmental costs, of this industry,” Assemblymember Didi Barrett, a Dutchess County Democrat, said on the Assembly floor Thursday.
Here’s what to know.
What would the NY data moratorium bill do?
In addition to pausing the state DEC’s approval of new data centers for one year, the legislation would also establish a new electricity rate for large data centers as well as set energy efficiency goals and labor standards and provide benefits for host communities.
The Senate sponsor of the bill, Sen. Kristen Gonzalez, a New York City Democrat, says it’s one of the first ones passed in the nation.
“The reason that’s important is because we’re acknowledging we’re not only in a climate crisis, not only in an energy crisis, but we’re in an affordability crisis,” Gonzalez said on the Senate floor on Thursday.
“And while my colleagues across the aisle and Big Tech would like us to do nothing,” she added, “doing nothing means that we would let these costs be passed down to our constituents.”
Maine recently became the first state to ban data centers, but its Democratic governor, Janet Mills, in late April vetoed the measure, citing in part its failure to allow a single data center project with broad local support to proceed.
Some NY Republican lawmakers oppose ban
Some Republican legislators pushed back on the measure as the state’s Public Service Commission, or PSC, has already been looking at the impact of data centers on New York.
Assemblymember Phil Palmesano, D-Corning, voted against the bill, saying he thinks lawmakers “should let the experts work that out.”
“Why is that proceeding important?” Palmesano asked. “Because you have the stakeholders at the table, you have the PSC, you have the NYISO, you have the utilities, you have the data centers who are all communicating with each other to say what’s the best plan moving forward.”
However, Barrett says the proceeding will offer more insight into next steps while the ban is in place.
“We don’t believe that the Legislature, since all of us are hearing from our constituents on this issue, should wash our hands of this and wait for the PSC to complete their proceeding before we address this challenging issue of our time,” Barrett added.
“This is our opportunity, as state leaders, to say we want to pause, we want to make sure that we’re looking at this in a way that protects ratepayers, which is one of our major priorities, protects the environment, and looks at the economic ramifications,” she later said.
What’s next?
The bill is now being reviewed by Gov. Kathy Hochul, who has yet to take a public stance on the legislation. If it’s signed, the measure will take effect immediately.
Emily Barnes covers state government for the USA TODAY Network-New York with a focus on how policy and laws impact New Yorkers’ taxes, communities and jobs. Follow her on Instagram or X @byemilybarnes. Get in touch at ebarnes@usatodayco.com.
This article originally appeared on Rockland/Westchester Journal News: Albany lawmakers pass one-year data center ban in NY. Here is why
Reporting by Emily Barnes, New York State Team / Rockland/Westchester Journal News
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By Emily Barnes, New York State Team | USA TODAY Network
