Res. No. 693
Resolution calling upon the New York State Legislature to pass, and the Governor to sign, S.9144/A.10141, imposing a moratorium on the issuance of permits for new data centers, and requiring the Department of Environmental Conservation to issue environmental impact statements on data centers and to issue orders to ensure that added electricity and gas costs are borne by the data centers
By Council Members Hudson and Morano
Whereas, Data centers are the physical buildings that house infrastructure required to run and maintain information technology services, including storing and processing data associated with those functions; and
Whereas, As major technology companies continue to invest heavily in artificial intelligence (“AI”) tools like large language models, more and larger data centers must be built to keep up with this emerging market, with the number of U.S. data centers doubling between 2018 and 2021, and doubling again between 2021 and 2025, according to a 2025 article published by the Lincoln Institute of Land Policy; and
Whereas, According to the U. S. Congressional Research Service, U.S. data centers consumed approximately 176 terawatt-hours of electricity in 2023, or about 4.4 percent of the country’s total usage for the year, not including electricity use associated with cryptocurrency mining; and
Whereas, Because ChatGPT and other AI-enabled queries require approximately 10 times the energy consumption of a traditional Google search according to a 2024 report from Goldman Sachs, data center energy usage is expected to nearly double in the near future, with projections that data centers will consume approximately 8 percent of U.S. power by 2030; and
Whereas, According to a Congressional Research Service study released in August of 2025, some recently built hyperscale data centers can draw up to 1,000 megawatts of electricity from the grid, approximately equivalent to the grid load from 800,000 homes; and
Whereas, Data centers are a source of noise, light, and air pollution, presenting potential health risks for nearby residents; and
Whereas, For instance, fans used to cool data centers can be as loud as 85 to 100 decibels each, with long-term exposure to noise at this level resulting in negative health outcomes, while water-cooled centers can draw hundreds of thousands of gallons of water per day, with a recent New York Times article finding that some data centers are filing water permits anticipating the use of millions of gallons of water per day; and
Whereas, The New York Independent System Operator (“NYISO”) is responsible for managing New York State’s (“NYS” or “State”) electric grid, and is required to maintain 2,620 megawatts (“MW”) of power reserves under normal system conditions; and
Whereas, In its 2026 annual summer reliability assessment, the NYISO projected peak demand of 31,578 MW against 34,615 MW in supply, meaning a cushion of just 417 MW beyond the required 2,620 MW reserves, the lowest margin in recent history; and
Whereas, NYS already hosts approximately 130 data centers as of January 2026, approximately half of which are located in the New York City (“NYC” or “City”) metropolitan area; and
Whereas, NYS and NYC are already facing power supply constraint issues, and would require increased generation and transmission capacity to accommodate an increase in data centers while maintaining grid reliability; and
Whereas, In the City, during periods of high electricity demand, supplemental power is generated by peaker plants, which burn fossil fuels, contribute significantly to localized air pollution, and are disproportionately located in disadvantaged communities that are already overburdened by environmental pollution; and
Whereas, Power utilities can apply to the New York Public Service Commission to pass the cost of grid upgrades along to consumers via rate increases, meaning that grid improvements required to accommodate an increased buildout of data centers would be financed by everyday ratepayers, increasing costs in NYC, which is already one of the most expensive electricity markets in the country; and
Whereas, Because wholesale electricity costs in the State increase with the level of demand, increased competition for the State’s power supply will further contribute to higher costs for everyday ratepayers; and
Whereas, Data centers are eligible to receive certain sales tax exemptions and property tax abatements in NYS; and
Whereas, Because they have low staffing requirements beyond the construction phase, data centers are not significant drivers of long-term employment, potentially making them poor returns on investment for such tax incentives; and
Whereas, An expansion of the data center industry in NYC is likely to lead to significantly higher energy costs for local ratepayers absent a policy change to ensure that added costs are borne by the entities consuming that energy; and
Whereas, Given the potential environmental, economic, and social consequences of expanding the data center industry in New York, careful consideration must be given to whether attracting this industry to the State is in the best interests of NYC residents, and compatible with State and City emissions reduction goals; and
Whereas, S.9144, introduced by State Senator Liz Krueger and pending in the New York State Senate, and companion bill A.10141, introduced by Assembly Member Anna Kelles and pending in the New York State Assembly, would impose a moratorium of at minimum 3 years and 90 days on the issuance of permits for new data centers; and
Whereas, The legislation would also require the Department of Environmental Conservation to issue a generic environmental impact statement on data centers 18 months after the bill becomes law, and issue new or updated regulations necessary to mitigate the environmental impact of data centers 3 years after the bill becomes law; and
Whereas, The legislation would also require the Public Service Commission to issue a report on the impact of data centers on utility rates for residential, commercial, and industrial users no less than 18 months after the bill becomes law, and to issue any additional orders necessary to minimize the impact of data centers on ratepayers, and to ensure that all costs associated with providing electric and gas service to these facilities are borne by the facilities themselves; now, therefore, be it
Resolved, That the Council of the City of New York Calls upon the New York State Legislature to pass, and the Governor to sign S.9144/A.10141, imposing a moratorium on the issuance of permits for new data centers, and requiring the Department of Environmental Conservation to issue environmental impact statements on data centers and to issue orders to ensure that added electricity and gas costs are borne by the data centers.
NRC
LS #22354
5/7/26