On March 15, 2024, New York State Senators Liz Krueger and Kristen Gonzales unveiled a bill that seeks to impose a three-year and ninety-day moratorium on the issuance of permits for new data centers. This legislative measure aims to provide ample time for comprehensive impact assessments and regulatory updates regarding the environmental and economic implications of data centers operating within the state.
The proposed bill mandates that the Department of Environmental Conservation and the Public Service Commission prepare detailed impact statements and reports during the pause. These documents will address the resource usage of data centers—specifically their consumption of water, electricity, and gas—as well as the effects on utility rates for consumers in New York. The legislators highlighted concerns over rising household electricity costs, referencing a Bloomberg analysis that indicated a national increase of 13 percent in household electricity rates in 2025, primarily attributed to the expansion of data centers.
Growing Trend Among States
New York’s initiative reflects a broader trend, as it becomes the sixth state in 2024 to consider similar legislation aimed at regulating data center development. States such as Georgia, Maryland, Oklahoma, Vermont, and Virginia have already proposed measures to slow down or scrutinize the rapid growth of these facilities.
The bill is currently under review by the Senate Environmental Conservation Committee, where it will undergo further evaluation. As the conversation surrounding data centers intensifies, this legislation could significantly impact the future of technological infrastructure and its balance with environmental sustainability in New York.
While the legislative process is still in its early stages, the implications of such a moratorium could reverberate throughout the data industry and influence discussions on energy consumption and environmental stewardship across the nation.
