New York State lawmakers have passed a one-year moratorium on new large data centers, marking the first statewide ban of its kind pending Governor Kathy Hochul's signature.
The legislation aims to give policymakers time to assess the environmental and economic impacts of large-scale data center operations. State legislators supporting the bill cited concerns about resource consumption and rising energy costs.
Under the measure, New York's environmental agency must produce a comprehensive impact report evaluating data center usage of electricity, water, and land, alongside pollution metrics. The moratorium applies only to new facilities during the one-year period.
Data centers have expanded significantly across the state in recent years, driven by cloud computing demand and artificial intelligence infrastructure needs. The ban represents a cautious approach as policymakers weigh the industry's economic benefits against environmental costs and strain on local power grids.
Governor Hochul has not yet indicated whether she will sign the legislation into law.
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