New York Lawmakers Propose 3-Year Data Center Construction Ban

Citing concerns over AI's impact on electricity costs and the environment, state legislators seek to pause new data center projects.

Published on Feb. 6, 2026

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New York state lawmakers have introduced a bill that would prevent the construction of new data centers in the state for three years. The proposed legislation cites concerns about the impact of artificial intelligence (AI) technology on electric bills and the environment, and would require state agencies to complete a review of the industry's effects before allowing new projects to move forward.

Why it matters

The rapid growth of data centers, driven by the rise of AI, is straining New York's power grid and raising electricity costs for both residents and businesses. The bill's sponsors argue that a temporary moratorium is necessary to study the industry's environmental toll, including its high carbon footprint and water usage.

The details

The bill would prevent state and local governments from issuing permits for new data centers designed to use at least 20 megawatts of electricity. During the three-year moratorium, the New York State Department of Environmental Conservation would have to produce a report analyzing the water use, greenhouse gas emissions, and noise pollution from data centers. The Public Service Commission would also have to study how data centers affect utility bills. After the review, regulators would issue new rules to ensure data centers cover the costs of infrastructure upgrades without passing them on to customers.

  • The bill was unveiled by Democratic state lawmakers on February 6, 2026.
  • If passed, the three-year moratorium would take effect immediately.

The players

Liz Krueger

Democratic state senator who co-sponsored the data center moratorium bill.

Anna Kelles

Democratic state assemblymember who co-sponsored the data center moratorium bill.

Food and Water Watch

Advocacy group that joined lawmakers in introducing the data center moratorium legislation.

NYC Democratic Socialists of America

Advocacy group that joined lawmakers in introducing the data center moratorium legislation.

Kristen Gonzalez

Democratic state senator and chair of the Senate's standing committee on technology, who is a co-sponsor of the bill.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.