New York lawmakers have taken a step towards reining in the expansion of data centers within the state. A new bill was introduced by Senators Liz Krueger and Kristen Gonzales, which proposes to halt the issuance of permits for new data center developments for at least three years and ninety days. This pause is intended to give regulators time to conduct thorough impact assessments and update existing regulations.
During this period, the Department of Environmental Conservation and Public Service Commissions will be required to issue regular impact statements and reports, as well as any new orders or guidelines deemed necessary to minimize the negative impacts of data centers on New York's environment and consumers. A key aspect of the bill is that these regulatory bodies will need to study data centers' usage patterns for water, electricity, and gas โ a trend that has led to significant increases in household electricity rates nationwide.
The statistics cited by Bloomberg highlight just how pressing this issue is: household electricity rates have risen 13 percent in 2025, primarily due to the rapid growth of data centers. New York joins an emerging list of states taking similar action, with Georgia, Maryland, Oklahoma, Vermont, and Virginia all introducing bills aimed at curbing data center development in recent weeks.
While this bill is still in its early stages and awaits consideration by the Senate Environmental Conservation Committee, it marks a significant shift in policy towards prioritizing environmental sustainability and consumer protection.
During this period, the Department of Environmental Conservation and Public Service Commissions will be required to issue regular impact statements and reports, as well as any new orders or guidelines deemed necessary to minimize the negative impacts of data centers on New York's environment and consumers. A key aspect of the bill is that these regulatory bodies will need to study data centers' usage patterns for water, electricity, and gas โ a trend that has led to significant increases in household electricity rates nationwide.
The statistics cited by Bloomberg highlight just how pressing this issue is: household electricity rates have risen 13 percent in 2025, primarily due to the rapid growth of data centers. New York joins an emerging list of states taking similar action, with Georgia, Maryland, Oklahoma, Vermont, and Virginia all introducing bills aimed at curbing data center development in recent weeks.
While this bill is still in its early stages and awaits consideration by the Senate Environmental Conservation Committee, it marks a significant shift in policy towards prioritizing environmental sustainability and consumer protection.