New York lawmakers have advanced a bill that would impose a one-year moratorium on permits for data centers with a capacity of 20 MW or more. This legislation is now awaiting the signature of Governor Kathy Hochul, who has not indicated her intention to sign it.
The bill was sponsored by Assemblymember Anna Kelles, who stated that the legislation aims to provide the state with necessary time to assess the environmental, energy, water, and ratepayer impacts of large-scale data center developments. Kelles emphasized the need for regulatory safeguards before further projects can proceed.
Legislative Details
On the same day the bill was approved, AI company Anthropic called for a pause on the rapid development of large language models, highlighting concerns over the implications of advanced AI technologies. This context underscores the growing scrutiny surrounding technology infrastructure.
The legislation includes provisions to protect consumers from rising energy costs by creating a specific classification for data center electrical customers. It mandates that all infrastructure upgrades and operational costs be borne by the data centers themselves.
Renewable Energy Mandates
Additionally, the bill stipulates that data centers with a peak load of at least 5 MW must transition to renewable energy sources. The requirements include sourcing one-third of their electricity from renewables between 2030 and 2034, two-thirds between 2035 and 2039, and 90 percent from 2040 onward.
Labor provisions in the bill require data centers to meet prevailing wage standards for construction and maintenance workers, unless they are covered by a collective bargaining agreement. Furthermore, data centers are expected to support local communities in renewable energy initiatives and alleviate pressure on local wastewater treatment systems.
Industry Response
Business leaders have expressed concerns regarding the bill, arguing that it was rushed through the legislative process without adequate debate. Julie Samuels, president and CEO of Tech:NYC, criticized the blanket moratorium, asserting that it could hinder investment in critical infrastructure projects.
Republican Assemblymember Phil Palmesano also voiced opposition, suggesting that data centers are being unfairly targeted compared to other tech sectors that receive tax incentives. He pointed to the recent groundbreaking of a Micron chip fabrication facility in New York, which is projected to create 50,000 jobs during construction and up to 90,000 jobs nationally.
The bill, which was approved by the Senate, contains exceptions for certain industrial computing applications, including manufacturing. Initial drafts of the legislation proposed a three-year pause on data center construction, indicating a significant shift in regulatory approach.
This article was produced by NeonPulse.today using human and AI-assisted editorial processes, based on publicly available information. Content may be edited for clarity and style.
