Albany, NY – Today State Senator Liz Krueger and Assemblymember Anna Kelles introduced legislation (S.9144) to establish a temporary moratorium on the siting and permitting of new data centers in New York State.

Across the United States and increasingly in New York, data-center development has accelerated at a pace that has outstripped existing planning, regulatory, and environmental review frameworks. Large-scale facilities place substantial new demand on the electric grid, driving up electricity costs for residential and commercial ratepayers, increasing reliance on fossil-fuel “peaker” plants during periods of peak demand, and complicating compliance with state greenhouse gas reduction requirements. Many data centers also rely on significant water withdrawals and discharge large volumes of heated or chemically treated wastewater, raising concerns for local water quality and aquatic ecosystems. The rapid turnover of data center equipment is also increasing electronic waste, and with New York already running out of landfill space, this could accelerate capacity loss and drive up trash disposal costs for households and businesses statewide.

The legislation responds to these documented and emerging impacts by creating a temporary, three-year pause on new data-center development while the Department of Environmental Conservation (DEC) completes a comprehensive environmental impact statement evaluating the industry’s current and projected effects on energy use, electricity rates, water resources, air quality, greenhouse gas emissions, and electronic waste. DEC will also be required to establish regulations to mitigate these negative impacts. At the same time, the bill requires the Public Service Commission (PSC) to report on the cost impacts of data centers on all other ratepayers, and issue any orders necessary to ensure those costs are fully borne by data center developers, not regular New Yorkers and other businesses.

This pause is intended to ensure that New York fully understands the cumulative impacts of this rapidly expanding industry and can establish clear, enforceable, data-driven standards so that any future development complies with existing environmental and climate law and proceeds in a manner that protects public health and environmental resources, and does not raise energy costs for New Yorkers.

In December more than 50 New York groups joined the call for a full moratorium on the approval and construction of new data centers, citing massive and unsustainable energy and water consumption, and skyrocking utility costs for families and small businesses. The effort was coordinated by the environmental group Food & Water Watch, the first organization in the country to call for a full nationwide moratorium.

“Massive data centers are gunning for New York, and right now we are completely unprepared. When one of these energy-guzzling facilities comes to town they drive up utility prices and have significant negative impacts on the environment and the community – and they have little to no positive impact on the local economy. New Yorkers are suffering from an affordability crisis and a climate crisis, and data centers are going to make both of those much harder to deal with. It’s time to hit the pause button, give ourselves some breathing room to adopt strong policies on data centers, and avoid getting caught in a bubble that will burst and leave New York utility customers footing a huge bill,” said Senator Liz Krueger.

“Data centers are expanding rapidly across the country and in New York, often with significant demands on our electric grid, water resources, and waste systems, and with real consequences for energy bills and climate pollution. New York already has strong environmental and climate laws, but those laws only work if we take the time to understand cumulative impacts and regulate accordingly. This legislation creates a responsible pause so the state can complete a comprehensive assessment and put clear, data-driven standards in place, ensuring that any future development is aligned with our climate goals and the long-term health and economic stability of New Yorkers,” said Assemblymember Anna Kelles.

“Data Centers are straining our energy grid, polluting our environment, and abusing our resources without any regulations or oversight. We cannot afford more data centers until we have clear guidelines for energy consumption and a comprehensive understanding of their environmental impacts.  I’m proud to co-prime sponsor this legislation with Senator Liz Krueger and Assembly Member Anna Kelles to create a moratorium on new data center construction to protect New Yorkers and our environment,” said Senator Kristen Gonzalez.

“As an environmental justice advocate and a member of the Committee on Environmental Conservation, I support the legislation introduced by Senator Krueger and Assemblymember Kelles to establish a statewide moratorium on new data centers in New York. Data centers are being built rapidly and with little meaningful oversight, despite the serious strain they place on our energy system, water resources, and local communities. These facilities increase pollution, drive up electricity costs, and threaten farmland and natural land, while disproportionately impacting low-income communities and Black, Brown, and Indigenous communities that have long faced environmental injustice. New Yorkers deserve accountability and transparency before our climate goals, public health, and quality of life are put at further risk,” said Assemblymember Jessica González-Rojas.

“We know enough about data centers to be certain that the unfettered expansion of this aggressive industry is one of the biggest environmental and social threats of our generation. This expansion is rapidly increasing demand for dirty energy, straining water resources, and raising electricity rates for families and small businesses. New Yorkers are paying the price while Big Tech rakes in the riches. This strongest-in-the-nation moratorium bill is logical, it’s timely, and it will deliver the results we need,” said Eric Weltman, senior New York organizer at Food & Water Watch.

“The proliferation of data centers and their insatiable appetite for ratepayer subsidies, excessive water use, noise pollution, and regulatory secrecy, must stop. New York State can show the nation how to regulate data centers in a way that protects consumers’ wallets, the public’s hearing, and the environment’s most precious resource, water. NYPIRG applauds Sen. Krueger and Assm. Kelles for this legislation,” said Blair Horner, senior policy advisor at NYPIRG.

“Worldwide, water conservation, energy experts, and ratepayer protection groups are sounding the alarm on data centers – there are massive costs to these facilities, and under the current business-as-usual model, we the people will be footing this bill. And not just financially – we’ll be paying for them with our clean air, water, and soil when these facilities drive up gas use, dump their e-waste here, and pollute our water for their cooling purposes. I thank Senator Krueger and Assemblymember Kelles for working to ensure our state has time to enact necessary protections for our communities against the harms that come with rampant extraction,” said Avni Pravin-Buck, deputy director of Alliance for a Green Economy.

“The data center build-out represents a massive transfer of New York’s land, water, and energy to a handful of tech corporations. While Big Tech uses our resources to build an industry meant to replace human labor, working-class New Yorkers are being forced to foot the bill through higher electric rates and a strained grid. NYC DSA supports this moratorium because we must prioritize human needs and public power over the speculative profits of billionaires. We need a pause to ensure our state’s resources are used for the public good, not corporate expansion,” said Katherine Jin, organizer with New York City DSA.

“Communities across New York are being inundated with data centers at a faster pace than we can imagine. These facilities pose a real threat to the environment and public health of residents, especially when communities are denied the transparent information and resources they need to understand the risks and protect themselves. I commend Senator Krueger and Assemblymember Kelles for listening to New Yorkers. This bill not only safeguards our shared future here in New York, but sets a powerful precedent for states across the nation,” said Yvonne Taylor, vice president of Seneca Lake Guardian.

“At a time when New York State should be leading the rapid transition to solar and wind energy generation while also ending further buildout of fossil fuel infrastructure, the permitting of data centers with massive energy needs will only feed into the fossil fuel industry’s narrative that to keep this technology running we have to put a pause on dealing with climate change for now. The pause should be the one put on the data centers – not renewable energy projects,” said Michael Richardson, campaigns director at Third Act New York.