Data centers may no longer be coming to a town near New Yorkers if a pair of state legislators get their way.
State Sen. Liz Krueger and Assembly member Anna Kelles introduced a bill that would create a three-year moratorium on data center development in the state, Wired reported. It’s one of a half-dozen states to recently announce a measure to combat the proliferation of the industrial real estate sector.
“Democrats and Republicans are moving forward with exactly these kinds of moratoriums,” Krueger said in a press conference. “New York should be in the front of the line to get this done.”
The moratorium would see the cessation of permits issued for data center projects while the Department of Environmental Conservation and the Public Service Commission work on reports assessing data center impacts and suggesting regulations.
Data center development has become a significant boon for the real estate industry, as big technology players increasingly seek out more computing power, particularly for artificial intelligence use. FMI Corporation recently forecasted a 23 percent uptick in data‑center construction spending this year, pushing the sector to more than 6 percent of all nonresidential building activity — up sharply from 2 percent in 2023.
But the developments are also fraught with controversy, especially environmental concerns and worries about impact on the grid.
New York is home to more than 130 data centers. Several projects are in the works, including a 450-megawatt development in Ithaca. There’s at least 10 gigawatts of electricity demand waiting to be connected to the grid.
Gov. Kathy Hochul recently launched an initiative to insulate ratepayers from high energy costs, demanding data center developers “pay their fair share.”
Among those calling for a national moratorium on such projects is Sen. Bernie Sanders. Food and Water Watch also gathered hundreds of environmental groups to press for a national moratorium.
Other states where data center moratoriums are under consideration include Georgia, Maryland, Oklahoma, Vermont and Virginia; the latter is one of the biggest hubs of data centers in the country.
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