New York Proposes Three-Year Pause on Data Center Development
New York state lawmakers have introduced groundbreaking legislation that would impose a temporary moratorium on new data center permits, marking the most comprehensive effort yet to regulate the rapidly expanding AI infrastructure industry.
The bill (S.9144), introduced on February 6, 2026, by State Senators Liz Krueger and Kristen Gonzales and Assemblymember Anna Kelles, would halt the issuance of permits for new data centers over 20 megawatts for at least three years. During this pause, the state Department of Environmental Conservation would complete a comprehensive environmental impact statement evaluating data centers’ effects on energy use, electricity rates, water resources, air quality, greenhouse gas emissions, and electronic waste.
Addressing Environmental and Economic Concerns
The legislation reflects growing concerns about the unchecked expansion of energy-intensive computing infrastructure. Data centers are straining energy grids, polluting the environment, and raising electricity rates for families and small businesses, according to advocates pushing for the moratorium.
A critical component of the bill requires the Public Service Commission to report on cost impacts to other ratepayers and issue orders ensuring data center developers—rather than regular New Yorkers—bear these costs. This provision directly addresses concerns that tech companies’ infrastructure expansion is shifting financial burdens to consumers.
Nationwide Movement Gains Momentum
New York is the largest state where lawmakers have proposed such a moratorium, but the concern is hardly isolated. Similar measures have been introduced in Maryland, Georgia, Oklahoma, Virginia, Vermont, Michigan, and Wisconsin, representing bipartisan concern about data center proliferation.
More than 230 environmental organizations, including Food & Water Watch, Friends of the Earth, and Greenpeace, have called for a national construction moratorium. Support spans the political spectrum, from progressive Senator Bernie Sanders to conservative Governor Ron DeSantis, though for different reasons—with concerns ranging from environmental impact to utility bill increases.
What Comes Next
The bill would require the Department of Environmental Conservation and Public Service Commission to establish regulations addressing identified impacts before any new large data centers could be approved. While the legislation’s ultimate prospects remain uncertain, its introduction signals a fundamental shift in how states approach AI infrastructure development, balancing innovation against sustainability and economic development against community welfare.