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The New York State legislature has approved a moratorium on the establishment of large data centers, marking a potential first for a state-wide ban if signed into law by Governor Kathy Hochul. The one-year pause is designed to allow for thorough examination of the environmental ramifications and energy costs associated with substantial data center operations.
Supporters of the bill assert that it aims to grant policymakers the necessary time to assess the ecological impact, including electricity, water, land usage, and pollution generated by data centers. Companies intending to develop large data centers, which are characterized by peak energy demands of at least 20 megawatts, will be required to organize and finance public hearings at least three months prior to project approval. Governor Hochul has not disclosed her intentions regarding the bill, but she has until December to decide whether to endorse or veto it, as reported by Bloomberg Government.
Public sentiment appears to lean against data centers, with surveys indicating that a majority of Americans are opposed to their presence in local communities. This controversial issue has prompted vigorous public discussions nationwide. Earlier this year, a proposal in Maine to impose a similar ban until late 2027 was vetoed by Governor Janet Mills due to a lack of exemptions for pre-planned projects, as covered by The New York Times. Currently, the New York Independent System Operator is evaluating 24 data center proposals amounting to over 9,000 megawatts, while a proposed 180 megawatt project in Albany has raised concerns among residents.
The legislation in New York represents a shorter moratorium compared to a previously introduced three-year proposal, according to Politico. Despite the reduced duration, the moratorium has faced criticism from industry representatives. Stacey Sikes, interim president and CEO of the Long Island Association, stated that a blanket moratorium could harm the state’s economy by stifling potentially beneficial data center projects.
A spokesperson for Governor Hochul, Kristin Devoe, confirmed that the Governor will evaluate the bill upon receipt.
