A New York bill banning data center construction statewide for one year is expected to be passed by the state Legislature before their session ends this week.
It’s a lesser version of a bill being championed by Assemblymember Anna Kelles, D-Ithaca, and Sen. Liz Krueger, a Manhattan Democrat, which pushed for a three-year moratorium on data centers over 20 megawatts in New York and would require the state Department of Environmental Conservation to study the potential impact of data centers, as well as adopt new regulations to mitigate the effects.
Assembly Majority Speaker Carl Heastie told reporters on Tuesday, June 2, that the Assembly is expected to pass the new one-year ban legislation this week.
“It was a combination of a number of bills, I’d say it was more of an omnibus bill,” Heastie added. “But between the two houses, we talked to some of the other stakeholders, so I think we’re comfortable with passing that bill.”
Albany lawmakers’ last scheduled session day is Thursday, June 4, but Heastie also said voting will continue on Friday.
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What would the new NY data moratorium bill do?
The new legislation, which was introduced on Monday, June 1, 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.
One of the new bill’s sponsors Assemblymember Didi Barrett, a Dutchess County Democrat, said she’s proud to introduce the legislation alongside Senate sponsor Sen. Kristen Gonzalez, a New York City Democrat, “to make sure everyday New Yorkers aren’t saddled with the costs of building and operating data centers.”
Potential data center moratorium has sparked mixed reactions
New York’s push for a data center moratorium has drawn both support and resistance as projects have been proposed all across the state from suburban Rockland County to rural Genesee County between Rochester and Buffalo.
Those in favor have shared their fear that data centers will drive up utility bills while creating few jobs. Environmental advocacy group Food & Water Watch has enthusiastically championed the three-year moratorium bill since its creation and is also behind the one-year option as well.
“Every day we are learning more and more about how AI data centers drastically increase demand for dirty energy, strain water resources, and raise electricity rates for families and small businesses,” says Food & Water Watch senior organizer Eric Weltman.
“A one-year pause on new hyperscale data center construction is a prudent path to ensuring that local community and state leaders have all the time and information they need to adequately protect New Yorkers from the many harms and hazards these facilities bring,” Weltman’s statement added.
However, groups that would benefit from data center production in the state, including the Digital Power Network, which represents Bitcoin miners and digital infrastructure developers, suggests a moratorium instead risks raising utility rates.
“Data centers spread fixed infrastructure costs across the system rather than concentrating them on residential ratepayers,” a memo from the group reads. “Stymying new development would offshore that investment, leaving households and the grid worse off.”
The organization also says moratoriums “reflect a fundamental misreading of the moment.”
“The instinct to suppress demand ignores the fact that rising load growth is already compelling the long-overdue reforms that actually address the sources of grid strain,” the memo added.
Some construction and labor unions have also come out against data center bans nationally, including the International Brotherhood of Electrical Workers, which said in a statement bans would “eliminate critical opportunities for union workers and stunt much-needed economic growth in communities across the country.”
Contributing: New York State Team Reporter Chris McKenna
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: One-year large data center moratorium set to pass in NY
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
