New York Legislature Passes Big Tech Regulation Bills

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.

Governor Hochul has previously suggested that decisions on data centers should be left to local communities and has advanced her own regulatory approach through the state's utility regulator, promising that data centers would be responsible for their own energy needs and would not increase costs for residential users.

Separately, a bill backed by State Attorney General Letitia James aims to ban the use of algorithms that set prices using information gleaned from people's data. James stated that the legislation focuses on cutting costs and protecting New Yorkers, welcoming innovation but not exploitation. Tech firms and advocacy groups like the Chamber of Progress have pushed back, arguing the provision could limit discounts and over-regulates data-driven pricing.