New York state legislators have introduced a bill proposing a three-year pause on the construction of new data centers, citing surging electricity demands from AI and cloud computing that threaten the state’s clean energy goals and grid stability.
The legislation, sponsored by Democratic Assemblymember Anna Kelles and Senator Kevin Parker, would halt approvals for new facilities over 1 megawatt until a comprehensive study assesses their environmental impact, water usage, and power consumption, potentially delaying expansions by tech giants like Amazon, Google, and Microsoft in the Empire State. Introduced on February 5, 2026, the bill builds on New York’s 2022 two-year moratorium on cryptocurrency mining data centers, which expired in late 2024 without renewal, and aims to address a broader data center boom projected to add 5 gigawatts of demand by 2030, equivalent to powering 4 million homes. Proponents argue it’s essential for meeting the state’s Climate Leadership and Community Protection Act targets, which mandate 70% renewable energy by 2030 and zero-emission electricity by 2040.
“Data centers are exploding in New York, and without action, they’ll derail our climate goals,” Kelles said in a statement accompanying the bill’s introduction. The proposal requires the Public Service Commission and Department of Environmental Conservation to conduct the study within 180 days of enactment, evaluating factors like carbon emissions, water cooling needs, and job creation. Exemptions could apply for facilities using 100% renewable energy or those deemed essential for economic development.
Data centers in New York already consume about 5% of the state’s electricity, a figure expected to triple by 2030 driven by AI workloads, according to a 2025 report from the New York Independent System Operator. Tech industry groups like the New York Tech Alliance have opposed the measure, arguing it could stifle economic growth and drive investments to states like Virginia or Texas, where data center incentives abound. “A moratorium risks New York’s position as a tech hub,” the alliance said in a February 7, 2026, statement.
This proposal echoes similar pauses in places like Singapore, which imposed a 2019-2021 moratorium on new data centers to manage energy use, and Ireland, where grid constraints have delayed approvals.
As AI and cloud demands skyrocket, global data center power use is forecasted to reach 8% of worldwide electricity by 2030, the bill’s fate in Albany could influence how states balance tech growth with sustainability, potentially forcing operators toward greener designs or relocation.
