New York Lawmakers Approve Datacenter Regulation Bill with One-Year Moratorium, Awaiting Governor's Decision

New York lawmakers have approved legislation that would impose a one-year moratorium on permits for datacenters drawing 20 MW or more, along with new requirements for labor standards, renewable energy sourcing, and community benefits. The bill requires datacenters to meet prevailing wage standards for construction and maintenance workers, mandates that all infrastructure and operational costs be borne by the datacenter operator rather than ratepayers, and establishes a phased shift toward renewable energy—requiring 33 percent renewable power by 2034, 67 percent by 2039, and 90 percent by 2040. Assemblymember Anna Kelles, the bill's sponsor, stated the legislation is necessary to allow New York time to evaluate the environmental, energy, water, and ratepayer impacts of rapid datacenter expansion. The bill has passed both chambers and now awaits Governor Hochul's signature; she has previously indicated a preference for local communities to regulate datacenter construction. Business groups, including Tech:NYC, argue the moratorium will slow infrastructure investment, while some Republicans contend datacenters are being unfairly targeted compared to other technology companies receiving tax incentives.