Key facts
- New York lawmakers passed a one-year moratorium on new data center construction.
- The bill requires companies planning 'large' data centers (at least 20 megawatts capacity) to fund a public hearing.
- Lawmakers aim to assess the impacts of data centers on the environment, energy prices, and local jobs.
- Governor Kathy Hochul has yet to sign the bill into law.
- Public opinion on new data center construction has become increasingly negative.
New York lawmakers have passed a bill that would impose a one-year moratorium on the construction of new data centers. This legislation, which is awaiting signature from Governor Kathy Hochul, is intended to provide a pause for assessing the environmental, energy price, and job impacts associated with new data center developments. The bill defines a 'large' data center as one with a capacity of at least 20 megawatts and mandates that companies seeking to build such facilities must fund a public hearing among local residents. Public sentiment towards new data center construction has reportedly soured, with a significant majority of Americans now opposing new builds in their areas. While some business groups, like the Long Island Association, warn that a blanket moratorium could harm the state's economy, proponents argue it is necessary for careful evaluation. A similar moratorium attempt in Maine was previously rejected by its governor.