Key facts
- New York's state legislature passed legislation impacting Big Tech companies.
- A potential moratorium on new data center construction applications could be enacted.
- A bill banning algorithmic price setting using consumer data was also passed.
- Tech companies and labor unions have differing views on the data center moratorium.
- State Attorney General Letitia James supports the ban on algorithmic price setting.
New York's state legislature has passed two significant pieces of legislation impacting the technology sector, with one bill potentially halting new data center construction and another banning the use of algorithms to set prices based on consumer data.
The proposed moratorium on data center applications, if signed by Governor Kathy Hochul, could halt projects that have not yet received state permits. This comes as the state's grid operator has warned of reliability risks due to a surge in applications for large power outlays for data centers. Tech companies, including Google, have active proposals in the state. Labor unions, while generally allied with tech firms on such issues, are divided, with some expressing concern that a moratorium could lead to job losses if data centers move elsewhere.