New York Eyes Nation-First Moratorium on Data Centers

State lawmakers plan to pass a one-year moratorium on new data centers projects in New York before the end of the legislative session this week.

If approved, it would be the first statewide moratorium of its kind in the country.

The moratorium would place a hold on large data center projects and require an environmental impact study on data center development in the state.

It would also require data centers to eventually rely mostly on renewable energy sources and owners to also fund projects that benefit the communities in which they locate.

Assembly Speaker Carl Heastie said the last-minute bill is a compromise after advocates sought a three-year ban.

“It was a combination of a number of bills, I say it was more of an omnibus bill,” Heastie said. “But between the two houses, we talked to many other stakeholders, so I think we’re comfortable in passing that bill.”

Advocates of a statewide moratorium on new data center projects rally on May 13, 2026, at the New York State Capitol.(Samuel King/New York Public News Network)

Advocates of a moratorium had rallied at the Capitol in recent weeks, and the effort gained momentum as more lawmakers joined to sponsor the legislation.

“As legislators, individually, we have the responsibility to step up and have a plan, and that is simply what we’re trying to do,” said Sen. Kristen Gonzalez, D-Queens. “All we’re trying to say is that it is reasonable to have a pause, a moratorium on the building of new data centers, so that we can plan for our energy future. So that we can protect our environment.”

But those opposed to the moratorium are making a lobbying push of their own, saying the proposal would cost jobs and destabilize the regulatory environment.

“There’s already protections, and you already have to go through a lot of permitting review processes to build any infrastructure of this size,” said Smythe Anderson, executive director of the Digital Power Network, a coalition of bitcoin miners and digital infrastructure leaders. “So a moratorium is just a signal to folks saying, you know, we’re not open for business here in New York.”

Gov. Kathy Hochul would have to sign off on the moratorium. While not commenting on this specific legislation, she said last week she plans to look intensely at the issue.

“I said that if they come to New York, they need to be more self-sustaining,” Hochul said. “They need to be able to manage their own energy costs without making local ratepayers pay more, and again, this is a local decision for municipalities, it’s land use, which is the purview of local governments.”

The regular session had been set to conclude on Thursday, but Heastie confirmed that the session will likely extend into Friday.

New York Public News Network | By Samuel King

Image: Cheryl Cordes of Alabama, Genesee County, speaks at a rally at the New York State Capitol supporting a data center moratorium on May 13, 2026. (Samuel King/New York Public News Network)