New York Proposes Moratorium On Data Center Permits

State Senate bill would halt new data center permits over 3 years to study energy, water, and emissions impacts.

Published on Feb. 12, 2026

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The New York State Senate has introduced a bill that would impose a statewide moratorium of at least three years on the issuance of state or local permits for the siting, construction, or operation of data centers capable of using 20 megawatts or more of electricity. The bill cites concerns over energy strain, water consumption, and greenhouse gas emissions tied to the rapid expansion of high-capacity data centers, particularly those supporting artificial intelligence and cloud computing.

Why it matters

This proposed legislation, if enacted, would have significant implications for pending and future data center development in New York, as it would halt new permits until the state can complete studies on the environmental and rate impacts of these energy-intensive facilities.

The details

The bill, known as Senate Bill S.9144, would prohibit the issuance of any new state or local permits for data centers using 20 megawatts or more of electricity until at least 90 days after the Department of Environmental Conservation issues new regulations and the Public Service Commission takes required actions. The moratorium would apply to all permits pending or filed after the bill's effective date, 30 days after it becomes law. Before the moratorium can be lifted, the DEC must prepare a Generic Environmental Impact Statement addressing electricity consumption, water usage, land use, pollution, and electronic waste from data centers, with a minimum 120-day public comment period and nine regional public hearings. The PSC must also issue a report on the rate impacts of data centers for residential, commercial, and industrial users, and potentially issue orders to minimize those impacts.

  • The bill was introduced in the New York State Senate in February 2026.
  • The moratorium would take effect 30 days after the bill becomes law.
  • The DEC must complete the Generic Environmental Impact Statement process, including public hearings, before the moratorium can be lifted, which will take at least 3 years after the effective date.
  • The PSC must issue its report on rate impacts within 18 months, and potentially issue orders to minimize those impacts no sooner than 3 years after the effective date.

The players

New York State Senate

The legislative body that introduced Senate Bill S.9144 to impose a moratorium on data center permits.

New York Department of Environmental Conservation (DEC)

The state agency that must prepare a Generic Environmental Impact Statement on data centers before the moratorium can be lifted.

New York Public Service Commission (PSC)

The state agency that must issue a report on the rate impacts of data centers and potentially issue orders to minimize those impacts.

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What’s next

The New York State Senate will continue the legislative process for Senate Bill S.9144, and if enacted, the DEC and PSC will begin the required studies and rulemaking to implement the data center moratorium.

The takeaway

This proposed moratorium on new data center permits in New York highlights growing concerns over the environmental and economic impacts of the rapid expansion of energy-intensive data infrastructure, particularly as it relates to electricity consumption, water usage, and greenhouse gas emissions. The outcome of this legislation could set a precedent for how other states approach regulating the data center industry.