New York State Data Center 3-Year Construction Moratorium Bill: Impact on AI Infrastructure
- New York State legislators have proposed a 3-year construction moratorium on new data centers exceeding 20MW.
- US electricity demand is projected to increase by 60-80% within 25 years, with data centers being a major contributor.
- Similar bills are in progress in at least 6 states, including Maryland and Virginia.
Regulations Targeting Big Tech’s Massive Facilities
New York State Senator Liz Krueger and Assemblymember Anna Kelles have introduced bill S9144. It proposes a minimum 3-year moratorium on the construction of new data centers using more than 20 megawatts of power.[TechCrunch]
The target is big tech’s massive facilities like those of Amazon, Meta, and Google. Buffalo’s public research project ‘Empire AI’ is an exception.[Common Dreams]
Driven by Power Shortages and Environmental Concerns
US electricity demand is projected to increase by 60-80% over the next 25 years. Data centers could account for more than half of this increase by 2030. New York State’s power grid already faces a 1.6-gigawatt shortfall.[Common Dreams]
There’s also a potential 19-29% increase in carbon emissions. Senator Krueger pointed out that “data centers have little positive impact on local economies.”[TechCrunch]
Environmental Impact Assessments During the Moratorium
For three years, the New York State Department of Environmental Conservation (DEC) will analyze water usage, greenhouse gas emissions, and noise levels. The Public Service Commission (PSC) will also investigate the impact on electricity rates.[The Hill]
The key is to make companies, not consumers, bear the infrastructure costs.
A Regulatory Trend Spreading Across the US
New York is at least the 6th state to consider a moratorium. Similar bills have emerged in Maryland, Georgia, and Virginia.[Common Dreams]
While the prospect of passage is uncertain, this trend raises important questions about the expansion of AI infrastructure. Hope this is helpful!
Frequently Asked Questions (FAQ)
Q: Does this bill apply to all data centers?
A: No. It only targets large facilities using 20 megawatts or more. Smaller facilities or the public project Empire AI are excluded. It’s a regulation aimed at big tech’s massive data centers.
Q: What will happen during the moratorium?
A: The Department of Environmental Conservation will prepare environmental impact statements on water usage, greenhouse gas emissions, and noise. The Public Service Commission will also investigate the impact on electricity rates and develop new regulatory standards.
Q: Is New York the only state pursuing similar legislation?
A: No. Similar bills have been introduced in Maryland, Georgia, Oklahoma, Virginia, and Vermont. There have been similar movements in Michigan and Wisconsin as well.
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References
- New York lawmakers propose a three-year pause on new data centers – TechCrunch (2026-02-07)
- ‘Strongest-in-the-Nation’ Data Center Moratorium Proposed in NY – Common Dreams (2026-02-06)
- N.Y. bill proposes 3-year pause on new data center projects – The Hill (2026-02-07)