New York Assembly Approves One Year Pause on Large Data Centers
Omnibus measure would pause new large-scale projects, create new utility rate classes and require community benefits.
June 8, 2026 – The New York Assembly passed legislation Thursday that would impose a year-long pause on permits for large-scale data centers.
If signed by the state Gov. Kathy Hochul (D), the Responsible Data Center Development Act would establish a moratorium on data center facilities requiring 20 megawatts or more, while the state studies the environmental and energy impact of the industry.
Maine Gov. Janet Mills (D) vetoed an 18-month moratorium on large-scale data center projects in April. Moratorium proposals have been introduced in at least a dozen more states.
The New York legislation is an omnibus measure that combines provisions from at least four bills sponsored by state Sen. Kristen Gonzalez, chair of the Senate Internet and Technology Committee, who represents parts of Manhattan, Brooklyn and Queens.
The legislation would create a new electric and water rate class for data centers over 20 megawatts.
It would set labor standards for the construction of data centers with peak loads over 5 megawatts to meet prevailing wage, work with apprenticeships and workforce training, and require all iron or steel used in construction to be made in the U.S.
The bill would create a host community benefit program that would require any data center operators with peak loads of over 20 megawatts to make investments in the local community.
It would also require data centers to source increasing percentages of their electricity from renewable energy systems, either via on-site production or power purchase agreements.
“As Legislators it is our job to help our state address this issue with a measured, thoughtful, and comprehensive approach to ensure the responsible operation and development of data centers, said Assemblymember Didi Barrett.
New York is home to 132 data centers, most of them clustered in Manhattan and Buffalo, according to Data Center Map.
Across the state, residents have raised concerns about data centers, expressing confusion about their impacts and seeking clearer information about them, lawmakers said.
“We must ensure communities have a voice, working people share in the benefits of new technology, and corporations pay their fair share of the costs,” Gonzalez said in a release.
