Summary:
The bill enacts a one-year data center moratorium in New York on new data centers that have a peak demand of 20MW or more. Further, it directs DEC and other agencies to develop a statewide environmental impact report on data center development, hold hearings on that report, and publish it within 18 months of the bill’s enactment; requires any data centers that are being considered for permits or approvals after the moratorium expires to hold a public hearing; works to ensure that large data center upgrade costs are borne by the data center; require that data centers ensure that at least ⅓ of their energy is produced by renewable energy sources in 2030 and increases to 90% by 2040; requires every data center with a peak load of five MW or more shall demonstrate that it is deriving as much of its energy needs as is technologically, environmentally, and practically feasible from on-site generation from renewable energy systems.
Explanation:
New Yorkers are already struggling with soaring utility bills, an overburdened energy grid, and the growing impacts of climate change. The rapid expansion of data centers threatens to make all of these challenges worse. These facilities require enormous amounts of electricity and water, yet New York still lacks a full understanding of their environmental, economic, and energy impacts.
Despite the scale of these risks, the data center industry remains largely unregulated. There are no clear answers about how communities and water resources will be protected, how the grid will handle the industry’s massive energy demands, or how New Yorkers will be shielded from the resulting environmental and financial costs.
This bill takes a necessary and commonsense step by placing a temporary pause on new data center development while the state studies these impacts and puts meaningful safeguards in place. With data center proposals moving forward across New York, the need for action has never been more urgent. Beyond the pause, it enacts new requirements for “large” data centers (those with peak demand needs of 20MW or more) to source energy from renewables, engage the public via public hearings, and directs the Department of Environmental Conservation to issue an ‘environmental impact report’ on data center development within 18 months of the bill’s enactment.
If lawmakers fail to act, New York risks allowing an industry with far-reaching consequences to continue expanding without adequate oversight. Until the state has a comprehensive plan to address these challenges, the Legislature should not leave Albany without passing a data center moratorium in New York. Waiting until 2027 to put protections in place is a risk New Yorkers cannot afford.
