New York State Senators Liz Krueger and Kristen Gonzales have introduced a bill aimed at placing a three-year and ninety-day halt on the issuance of permits for new data centers. This legislation seeks to provide sufficient time for necessary impact assessments and to revise regulations concerning these facilities.
The proposed bill mandates the Department of Environmental Conservation and the Public Service Commission to produce impact statements and reports during this suspension. These documents will address various concerns, including the environmental and consumer impacts of data centers in New York. Specifically, the departments will need to investigate the water, electricity, and gas consumption of data centers, as well as how this usage affects rates for consumers.
According to a recent analysis by Bloomberg, household electricity rates in the United States increased by 13 percent in 2025, largely due to the growth of data centers. This statistic serves as a pivotal point in supporting the bill’s objectives.
New York’s initiative reflects a broader trend, as it becomes the sixth state this year to propose similar legislation to curb data center expansion. Other states, including Georgia, Maryland, Oklahoma, Vermont, and Virginia, have already taken steps to address the implications of these facilities.
The bill is currently under consideration by the Senate Environmental Conservation Committee as it progresses through the legislative process. As discussions unfold, lawmakers and stakeholders will examine the potential impacts of data centers on both the environment and utility costs, which are of increasing concern to consumers across New York.
The outcome of this bill could set a significant precedent for how data center developments are managed in the state, potentially influencing policies in other regions facing similar challenges.
