New York lawmakers pass a one-year pause on new large data centers

In short: New York’s state legislature passed a bill that would pause new large data center projects for one year, if Governor Kathy Hochul signs it.

What happened

New York lawmakers approved a one-year moratorium, meaning a temporary pause, on new large data centers. A data center is a building full of computers that store and process online information (like a physical home for the internet).

The bill targets large projects, defined as sites that would draw at least 20 megawatts at peak use. That is a very large amount of electricity, roughly like adding a major new power user to the grid.

Supporters say the pause is meant to give the state time to study how these facilities affect the environment and local utility bills. The bill tells the state’s environmental agency to write a report on how much electricity, water, and land data centers use, and what pollution they create.

The proposal also adds a new public step before approval. Companies planning a large data center would have to hold and pay for a public hearing at least three months before the project could be approved.

Governor Hochul has not said whether she will sign the bill. Bloomberg Government reported she has until December to sign it or veto it.

Why it matters

Data centers can bring jobs and investment, but they can also strain local power and water systems, especially when many are proposed at once. New York’s grid operator is reviewing 24 data center proposals totaling more than 9,000 megawatts, according to News10 ABC. If the bill becomes law, it could slow those plans down while the state gathers clearer information.

Source: The Verge AI