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New York Assembly Approves One-Year Moratorium on Large Data Centers

The bill sends the state environmental agency an 18-month study of energy and water impacts before lawmakers and the governor decide the next steps.

Overview

  • The Assembly voted 102-39 Thursday to impose a one-year pause on new large data centers, marking the legislature’s move to halt approvals while a review proceeds.
  • The omnibus measure requires the Department of Environmental Conservation to study electricity, water use and pollution for 18 months and to hold statewide hearings funded by applicants.
  • The bill also sets conditions for future projects, including a host-community benefits package, reclassification for water and energy charges, and a requirement that at least one-third of data-center power come from renewables.
  • Opponents including construction unions, Republican lawmakers and business groups say the pause will cost jobs and drive investment to other states, while supporters say the moratorium protects communities and infrastructure overwhelmed by rapid data-center growth.
  • The measure now awaits action in the State Senate and a decision by Gov. Kathy Hochul, and it lands as roughly 14 other states consider similar pauses or new rules for data-center siting.