Legislation Details

File #: Res 0693-2026    Version: * Name: Imposing a moratorium on the issuance of permits for new data centers, and require the Department of Environmental Conservation to issue environmental impact statements on data centers. (S.9144/ A.10141)
Type: Resolution Status: Committee
Committee: Committee on Consumer and Worker Protection
On agenda: 10/22/2026
Enactment date: Law number:
Title: 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
Sponsors: Crystal Hudson, Frank Morano
Council Member Sponsors: 2
Attachments: 1. Res. No. 693

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