Democratic lawmakers in New York introduced legislation to establish a three-year moratorium on permits for new data centers.
The proposed pause allows state agencies to conduct a comprehensive environmental impact study. This review will evaluate the industry's effects on energy consumption, electricity rates, water resources, and greenhouse gas emissions.
Lawmakers cite the artificial intelligence boom as a primary driver of rapid data center growth that strains the state's power grid. Critics argue these facilities jeopardize climate goals by increasing utility costs for residents and forcing a greater reliance on fossil fuels.
New York is at least the sixth state to consider a construction pause for these facilities.