New York Proposes 3-Year Pause on New Data Centers

Lawmakers cite concerns over energy costs and environmental impact of proliferating data infrastructure.

Published on Feb. 7, 2026

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New York state lawmakers have introduced a bill that would impose a moratorium of at least three years on permits tied to the construction and operation of new data centers. The bill's sponsors cite concerns about the impact of data centers on surrounding communities, including increased home electricity bills. Critics of data center expansion include progressive Senator Bernie Sanders and conservative Florida Governor Ron DeSantis.

Why it matters

As tech companies continue to invest heavily in building AI infrastructure, there are growing concerns about the environmental and economic toll of proliferating data centers. New York is at least the sixth state to consider pausing new data center construction, reflecting a broader debate over balancing technological progress with sustainability and affordability.

The details

The New York bill, sponsored by state senator Liz Krueger and assemblymember Anna Kelles, both Democrats, would impose a moratorium on new data center permits for at least three years. Krueger described her state as 'completely unprepared' for the 'massive data centers' that are 'gunning for New York.' The bill's supporters, including the advocacy group Food & Water Watch, argue the pause is needed to 'adopt strong policies on data centers' and avoid 'utility customers footing a huge bill.'

  • In February 2026, New York state lawmakers introduced the data center moratorium bill.

The players

Liz Krueger

New York state senator and sponsor of the data center moratorium bill.

Anna Kelles

New York state assemblymember and co-sponsor of the data center moratorium bill.

Bernie Sanders

U.S. Senator and progressive critic of data center expansion.

Ron DeSantis

Governor of Florida and conservative critic of data centers.

Food & Water Watch

Environmental advocacy group that supports the New York data center moratorium.

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What they’re saying

“It's time to hit the pause button, give ourselves some breathing room to adopt strong policies on data centers, and avoid getting caught in a bubble that will burst and leave New York utility customers footing a huge bill.”

— Liz Krueger, New York state senator (Politico)

“Data centers will lead to 'higher energy bills just so some chatbot can corrupt some 13 year old kid online.'”

— Ron DeSantis, Governor of Florida (Wired)

What’s next

The New York state legislature will consider the data center moratorium bill in the coming months, with an uncertain outlook on its prospects for passage.

The takeaway

The proposed data center moratorium in New York reflects a growing national debate over the environmental and economic tradeoffs of the tech industry's relentless infrastructure expansion. As more states consider similar pauses, policymakers will have to balance innovation with sustainability and affordability.