New York lawmakers propose a three-year pause on new data centers

Source: TechCrunch

Image Credits: Brandon Dill for The Washington Post / Getty Images

Published: February 7, 2026, 10:23 AM PST

Proposed Moratorium on New Data Centers

New York state lawmakers have introduced a bill that would impose a moratorium of at least three years on permits tied to the construction and operation of new data centers. While the bill’s prospects are uncertain, Wired reports that New York is at least the sixth state to consider pausing construction of new data centers.

Context

As tech companies plan to spend ever‑increasing amounts of money to build AI infrastructure, both Democrats and Republicans have expressed concerns about the impact those data centers might have on surrounding communities. Studies have also linked data centers to increased home electricity bills.

Political Reactions

• Progressive criticism: Senator Bernie Sanders has called for a national moratorium.
• Conservative criticism: Florida Governor Ron De Santis said data centers will lead to “higher energy bills just so some chatbot can corrupt some 13‑year‑old kid online.” [source]

Environmental Opposition

More than 230 environmental groups—including Food & Water Watch, Friends of the Earth, and Greenpeace—recently signed an open letter to Congress calling for a national moratorium on the construction of new data centers.

Eric Weltman of Food & Water Watch told Wired that the New York bill—sponsored by state Senator Liz Krueger and Assemblymember Anna Kelles, both Democrats—is “our idea.” Similar pauses have been proposed by Democrats in Georgia, Vermont, and Virginia, while Republicans have sponsored comparable bills in Maryland and Oklahoma.

According to Politico, Krueger described her state as “completely unprepared” for the “massive data centers” that are “gunning for New York.”

“It’s time to hit the pause button, give ourselves some breathing room to adopt strong policies on data centers, and avoid getting caught in a bubble that will burst and leave New York utility customers footing a huge bill,” she said.

Governor’s Initiative

Last month, New York Governor Kathy Hochul announced a new initiative called Energize NY Development. The plan aims to modernize how large energy users—such as data centers—connect to the grid while requiring them to “pay their fair share.”