New York is poised to join a rapidly expanding national movement, as two state lawmakers formally introduced legislation on Friday proposing a three-year moratorium on new data center development. This move positions the Empire State as at least the sixth in recent weeks to consider such a pause, signaling a potent and increasingly bipartisan backlash against the unchecked expansion of these digital behemoths across the United States.
A National Tide Against Unfettered Growth
The proposed New York bill is not an isolated incident but rather a significant ripple in a growing wave of concern. State Senator Liz Krueger, a Democrat and co-sponsor of the bill alongside Assembly Member Anna Kelles, emphasized the widespread nature of this legislative trend. “Data center moratoriums are being tested as a model throughout states in this country,” Krueger stated at a press conference. “Democrats and Republicans are moving forward with exactly these kinds of moratoriums. New York should be in the front of the line to get this done.”
Bipartisan Voices Join the Fray
Indeed, the sentiment extends far beyond New York’s borders and political aisles. Last December, Vermont Independent Senator Bernie Sanders became the first national figure to advocate for a blanket moratorium on data center permitting, arguing it would “ensure that the benefits of technology work for all of us, not just the 1 percent.” Just prior to New York’s announcement, Florida Governor Ron DeSantis, a Republican, sharply criticized data centers during an AI policy roundtable. DeSantis, who has previously championed legislation for consumer protections and limits on data center expansion, articulated a common frustration: “I don’t think there’s very many people who want to have higher energy bills just so some chatbot can corrupt some 13-year-old kid online. That’s not what anybody is signing up for.” His remarks were met with applause, underscoring the broad appeal of these concerns.
The Mounting Pressure on New York’s Infrastructure and Environment
New York currently hosts over 130 data centers, with several ambitious projects, including a 450-megawatt facility planned for an old coal plant site, either proposed or under construction. The strain on the state’s electric grid is becoming alarmingly clear: one utility reported 10 gigawatts of electric demand, predominantly from data centers, awaiting connection—a demand that has tripled in just one year. This rapid expansion is fueling widespread anxieties regarding grid stability, environmental impact, and the potential for consumers to bear the brunt of escalating energy costs.
Protecting Ratepayers and the Planet
Recognizing these pressures, New York Governor Kathy Hochul launched an initiative last month aimed at improving grid upgrades and interconnection, while crucially requiring data centers to “pay their fair share” of energy costs. This aligns with broader environmental advocacy; in early December, over 200 national and local environmental groups, spearheaded by Food and Water Watch, urged Congress to enact a national moratorium, labeling data center expansion and the AI boom as “one of the biggest environmental and social threats of our generation.”
Eric Weltman, senior strategist for Food and Water Watch’s New York chapter, confirmed their role in initiating the state’s bill. He expressed skepticism about existing legislative attempts, stating, “There are a lot of extraordinarily well-intentioned and well-meaning bills that have been introduced to attempt to address the many impacts that data centers have. Our concern was, and remains, that they’re not adequate.”
A Patchwork of State and Local Responses
The legislative landscape across the U.S. reflects this growing apprehension. Beyond New York, lawmakers in at least five other states—Georgia, Maryland, Oklahoma, Vermont, and Virginia—have introduced bills this year proposing various temporary halts on data center development. While Democratic legislators lead efforts in Georgia, Vermont, and Virginia, Republican sponsorship drives the bills in Oklahoma and Maryland, further highlighting the bipartisan nature of the issue. This state-level activity mirrors a trend already established at the local level, with Tech Policy Press reporting that by the end of December, at least 14 states had towns or counties that had already paused data center permitting and construction.
Industry’s Evolving Stance
In response to this mounting scrutiny, the data center industry appears to be adjusting its approach. Microsoft, for instance, recently unveiled a set of “good neighbor” commitments, backed by the White House, aimed at fostering better community relations where it operates. Dan Diorio, Vice President of State Policy at the Data Center Coalition, an industry group, acknowledged the need for greater transparency. In a statement to WIRED, he affirmed the industry’s commitment to “continued efforts to better educate and inform the public… through community engagement and stakeholder education, which includes factual information about the industry’s responsible usage of water and our commitment to sustainability.”
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