New York State Senator Liz Krueger and Assemblymember Anna Kelles have recently introduced legislation to impose a temporary, three-year moratorium on new data center construction across the state. The legislation responds to growing public pressure since December 2025, when over 50 groups called for a moratorium, citing unsustainable resource use and rising utility costs.
According to a press release the Department of Environmental Conservation would complete a comprehensive environmental impact statement and establish rules to mitigate negative effects under the proposed legislation. The Public Service Commission would also report on data centers’ costs to other ratepayers and ensure developers bear those costs rather than the public.
The S.9144 bill aims to give regulators time to study the environmental, energy, and economic impacts of the rapidly expanding industry.
PURPOSE OR GENERAL IDEA OF BILL:
“This bill imposes a moratorium lasting a minimum of three years and ninety days on the issuance of permits for new data centers. During the moratorium, the bill requires the Department of Environmental Conservation to issue a generic environmental impact statement on data centers, as well as any new or amended regulations it deems necessary to minimize those impacts. It also requires the Public Service Commission to issue a report on rate impacts of data centers, and any new orders it deems necessary to ensure those impacts are not borne by other residential, commercial, or industrial ratepayers.”
Liz Kruege, New York State Senator, said, “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.”
Anna Kelles, Assemblymember, said, “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.”
Numerous lawmakers based in the state of New York had voiced their support for the new legislation.
Kristen Gonzalez, New York State Senator, said, “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.”
Jessica González-Rojas, Assemblymember, said, “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.”
Civil society groups have also supported the legislation, mainly due to concerns surrounding the use of large amounts of water and electricity.
Eric Weltman, Senior New York organizer, Food & Water Watch, said, “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.”
Blair Horner, Senior Policy Advisor, NYPIRG, said, “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.”
Avni Pravin-Buck, Deputy Director, Alliance for a Green Economy, said, “Worldwide, water conservation, energy experts, and ratepayer protection groups are sounding the alarm on data centers, 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.”
Katherine Jin, Organizer, New York City DSA, said, “The data center build-out represents a massive transfer of New York’s land, water, and energy. 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.”
Yvonne Taylor, Vice President, Seneca Lake Guardian, said, “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.”
Michael Richardson, Campaigns Director, Third Act New York, said, “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.”
Data centers use a lot of electricity and water, produce heat and chemical waste, and add to the growing problem of electronic waste. The rapid increase in demand puts pressure on the power grid, drives up electricity costs for homes and businesses, and leads to more frequent use of fossil-fuel peaker plants, making it harder for the state to meet its greenhouse gas reduction targets.