Overview
- The New York State Legislature passed a one-year moratorium on new large data centers this week and sent the bill to Governor Kathy Hochul for review, pausing projects that would require 20 megawatts or more while state agencies assess impacts.
- Illinois Governor J.B. Pritzker directed the state Department of Commerce and Economic Opportunity to stop processing new data-center tax-incentive agreements beginning July 1 and laid out rules he wants lawmakers to pursue in the fall veto session.
- Local governments are moving quickly as well, with some cities voting to ban or temporarily block data-center projects and others, including Seattle, advancing one-year moratoria to study local effects.
- Supporters of the pauses say regulated growth is needed to protect the grid, conserve water and shield ratepayers from higher bills, while industry groups and construction unions warn the actions will cost investment and jobs.
- Policymakers are weighing concrete fixes such as a dedicated utility rate class for large users, mandatory reporting of energy and water use, developer-funded grid and clean-energy upgrades, and community-benefit agreements that could reshape where and how hyperscale centers are built.