Lawmakers in New York have introduced legislation that would impose a three-year moratorium on the construction of new data centers. The proposed bill, currently under consideration by the state legislature, seeks to pause the approval and permitting of new cryptocurrency mining and data center facilities for a period of 36 months.
The legislative action makes New York at least the sixth state in the nation to consider halting the rapid expansion of data center infrastructure. The bill’s primary sponsors have cited concerns over the facilities’ substantial energy consumption and potential environmental impacts as key motivations for the proposed pause.
Scope and Rationale of the Proposed Legislation
The legislation specifically targets new data centers and cryptocurrency mining operations that would be located in re-purposed fossil fuel power plants. It would also apply to any new facility requiring a new or expanded electric service connection of 25 megawatts or greater. The moratorium would remain in effect until a comprehensive generic environmental impact statement is completed by the New York State Department of Environmental Conservation.
Proponents of the bill argue that the temporary halt is necessary to allow state agencies to fully assess the long-term consequences of data center growth. Key areas of study would include the cumulative impact on greenhouse gas emissions, water usage for cooling, local air quality, and the strain on the state’s electrical grid.
National Context and Industry Reaction
New York’s proposal follows similar legislative discussions in states including Oregon, Washington, and South Carolina, where concerns over resource consumption have also prompted calls for regulatory review. The data center industry has experienced explosive growth in recent years, driven by demand for cloud computing, artificial intelligence, and digital storage.
Industry trade groups have expressed opposition to moratoriums, stating that such pauses could stifle economic investment, job creation, and technological innovation. They emphasize ongoing efforts to improve energy efficiency and increase the use of renewable power sources within the sector. The bill’s prospects for passage in New York remain uncertain, as it must navigate committee reviews and floor votes in both legislative chambers.
Potential Implications and Next Steps
If enacted, the moratorium would significantly impact technology companies and developers with plans for new facilities in the state. New York is a major hub for financial technology and digital infrastructure, hosting several existing large-scale data center campuses. The proposed study period would also influence future state energy policy and siting regulations for high-energy-use industries.
The bill has been referred to the New York State Senate’s Environmental Conservation Committee for initial review. Committee hearings, where expert testimony and public comment would be heard, are the expected next step in the legislative process. Any movement toward a vote would likely occur during the current legislative session, which runs through June.
Source: GeekWire
