Albany, NY – This afternoon, state legislators and environmental advocates held a press conference at the State Capitol to call for the quick passage of a bill to enact a three-year moratorium on construction of new hyperscale data centers in the state, fully assess their costs and impacts, and require regulations to protect ratepayers and our health, communities, and environment. Unregulated, out-of-control AI data center development has rapidly become an urgent issue for communities throughout the state and the country.

Bill sponsors, co-sponsors and statewide environmental leaders called for Governor Hochul and the legislature to reassert national leadership on energy and the environment by passing the first statewide pause on new data centers before the legislative session closes this week. 

Recently more than 150 community, consumer, environmental and faith organizations from throughout New York called for quick passage of the moratorium bill. Additionally, in a letter sent to Governor Hochul and the legislature late last month, nearly 500 small business owners from across the state called for the passage and signing of the bill.

“Massive, energy-guzzling data centers are targeting our communities, threatening to drive up energy costs for regular New Yorkers even further, and bringing a host of other negative impacts to our water, our land, the health of our families, and our quality of life,” said Senator Liz Krueger. “It is critical that we put in place commonsense regulations to allow New York to reap the potential economic benefits of data centers while avoiding the significant downsides these facilities have brought to other states. The first step is to hit the pause button by passing a temporary moratorium to give the Legislature and state agencies time to develop and implement those regulations before it is too late to protect New Yorkers.”

“The scale of data center development currently being proposed in New York is unlike anything our state has faced before. These facilities consume enormous amounts of electricity, place significant demands on water resources, generate air and noise pollution, produce substantial volumes of electronic waste, and require major expansions of New York’s energy infrastructure. Taxpayers and ratepayers should not be asked to subsidize an industry with hundreds of millions of dollars in tax breaks while creating few permanent jobs and placing extraordinary demands on our aging electric grid,” said Assemblymember Anna Kelles. “If operated at full demand, the data centers currently proposed in New York could consume nearly twice as much electricity as every household in the state combined. Meeting that demand will require billions of dollars in generation, transmission, and distribution investments, costs that will fall on ratepayers while the profits flow to data center owners and shareholders. This legislation creates a temporary pause on new permits while the state conducts a comprehensive review of the industry’s impacts and develops appropriate safeguards. New Yorkers deserve transparent answers and enforceable protections before decisions are made that could affect our electric system, utility bills, public health, and climate goals for decades to come.”

“One of these proposed data centers could be built just minutes from where my family and I live, and after listening to residents, advocates, labor representatives, and project supporters, I have come to one conclusion: we are moving faster than the facts. Before New York approves dozens of projects that could reshape our energy grid and impact communities for generations, we need to slow down and make sure the proper safeguards are in place. That’s why I support this moratorium. Getting this right is more important than getting it done quickly,” said Senator Jeremy Zellnor.

“New York has every reason to embrace a growing technology economy, and data centers can be part of that future. But they shouldn’t be built on ratepayer-funded grid upgrades, excessive tax giveaways, or limited environmental oversight. A moratorium would give us time to establish clear rules, ensuring data centers are good neighbors, create meaningful jobs, protect our communities, and deliver a fair return on public investment,” said Senator Rachel May.

“Across the country, communities are grappling with a rapid increase in the number of data centers being built and proposed, and it has reached the Capital Region in the form of the newly proposed Kenwood Commons data center,” said Senator Patricia Fahy. “Data centers use massive amount of electricity and clean drinking water, and their impacts on adjacent neighborhoods and communities are still widely unknown. Instituting a moratorium to protect our communities is common sense as this conversation continues to play out at the state and national levels.”

“New York must lead the nation in both technological innovation and responsible governance. A10141A ensures that the rapid expansion of large-scale data centers does not come at the expense of our electric grid, our environment, or working families already struggling with utility costs.” said Assembly Member Jenifer Rajkumar. “This legislation takes a measured approach: it pauses new permits so we can fully assess the impact of these facilities, protect ratepayers, safeguard environmental justice communities, and make sure the costs of private development are not shifted onto everyday New Yorkers. We can embrace the future of artificial intelligence while putting people first.”

“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 would drastically increase demand for dirty energy, strain water resources, and raise electricity rates for families and small businesses,” said Eric Weltman, senior New York organizer at Food & Water Watch. “New Yorkers refuse to pay 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.”

Introduced by State Senator Liz Krueger and Assemblymember Anna Kelles, with Senator Kristen Gonzalez as co-prime sponsor, the bill would create a temporary, three-year pause on new data-center development while the Department of Environmental Conservation (DEC) and the Public Service Commission (PSC) complete comprehensive reports evaluating the industry’s current and projected effects on electricity usage and rates, water resources, air quality, greenhouse gas emissions and electronic waste, and issue new regulations to mitigate those negative impacts. 

“New York’s power grid is under assault. More than 30 large-scale “hyperscale” data centers are currently proposed to be built across New York State, largely driven by the boom in artificial intelligence and cryptocurrency. All of these facilities would collectively draw an estimated 10,000 megawatts (MW) of power, exceeding the total daily power usage of New York City,” said Roger Downs, Conservation Director, Sierra Club Atlantic Chapter. “New data centers are significant sources of air and water pollution and are making everyday energy costs skyrocket. New York needs some breathing room from this onslaught.  A three-year moratorium will give us time to study this emerging industry, restrict its most harmful elements and establish safeguards to protect our communities, our environment and the affordability of our energy bills.”

“Issuing a pause on the expansion of data centers in New York State is common-sense policy to protect the people and environment of New York,” said Stephan Edel, Executive Director of NY Renews. “Nationwide, the rapid expansion of data centers has caused huge increases in pollution, spikes in electricity prices, and led to noise and quality-of-life complaints for the communities burdened by these facilities. These centers must be regulated, and they must be regulated well. This bill gives New York the time it needs to do it right.”

“This is a very big moment for New Yorkers! With the clock ticking loudly as this legislative session winds down, there’s still time for our elected representatives to step up and push these commonsense data center moratorium bills over the finish line. So many of our sisters and brothers across the state are already struggling to make ends meet and the continued frenzied push for new large scale data centers will push utility bills even higher, while further straining local water resources. Local governments often don’t have the capacity and tools to evaluate huge and complex projects like these, so this is exactly when we need the help of our state government. Let’s prioritize the interests of our people and communities over Big Tech,” said Harry Moran of Third Act Upstate New York.

“The League of Women Voters of New York State urges the Legislature to pass S9144/A10141.  Without proper environmental review, AI data centers’ rapid expansion threatens New York’s climate goals and risks making our state unaffordable. New Yorkers deserve a system of government that protects us and our state,” said Erica Smitka, Executive Director, League of Women Voters of New York State.

“In other states, the rapid expansion of AI data centers has already led to unacceptable utility rate increases for everyday consumers. New York must act now to protect households and small businesses from subsidizing the electric infrastructure needed to serve some of the world’s largest, most profitable corporations,” said Laurie Wheelock, executive director and counsel of the Public Utility Law Project (PULP). “PULP supports this legislation because a three-year moratorium would give New York the opportunity to evaluate the impacts of AI data centers on the grid, the environment, and New York ratepayers before further development moves ahead.”

“New Yorkers are dealing with utility ratepayer shocks. AI data centers further drive up energy costs, add new pollution to communities, strain water supplies, and generate excessive noise. NYPIRG applauds the work of Senators Krueger and Gonzalez as well as Assemblymembers Kelles and Barrett in advocating for the state hitting the ‘pause button’ when it comes to allowing new data centers to come online in New York,” said Blair Horner, NYPIRG Senior Policy Advisor.

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.

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