New York Considers Bills to Regulate AI and Data Centers

Got story updates? Submit your updates here. ›

The New York state legislature is considering two bills that would impose new regulations on the AI industry and data center construction. The first bill, the NY FAIR News Act, would require labels on AI-generated content and mandate human review before publication. The second bill would impose a three-year moratorium on permits for new data centers, citing concerns over rising energy costs and strain on the power grid.

Why it matters

These proposed bills reflect growing concerns over the rapid expansion of AI technology and the environmental impact of the data center industry. The legislation aims to increase transparency around AI-generated content and mitigate the strain that data centers are placing on New York's energy infrastructure.

The details

The NY FAIR News Act would require that any news content 'substantially composed, authored, or created through the use of generative artificial intelligence' carry a disclaimer. It would also mandate that such content be reviewed and approved by a human with 'editorial control' before publication. The bill also calls for organizations to disclose to employees how and when AI is being used, as well as safeguards to protect confidential information. Meanwhile, the second bill would impose a three-year moratorium on permits for new data centers, citing a tripling of 'large load' connection requests to the power grid and over 130 existing data centers in the state.

• The New York state legislature is set to consider the two bills.
• National Grid New York says requests for 'large load' connections have tripled in just one year, with at least 10 gigawatts of demand expected to be added in the next five years.

What’s next

The New York state legislature will consider the two bills in the coming months. If passed, the NY FAIR News Act would go into effect immediately, while the moratorium on new data center permits would last for at least three years.