New York State Senators Liz Krueger and Kristen Gonzales have introduced legislation that would pause the issuance of permits for new data centers for at least three years and ninety days. During this period, the Department of Environmental Conservation and the Public Service Commission would conduct impact assessments and develop updated regulations aimed at addressing environmental and consumer concerns related to data center operations.
The bill mandates studies on data centers’ consumption of water, electricity, and gas, as well as their effects on resource rates. Citing a Bloomberg analysis, the proposal notes that household electricity rates nationwide increased by 13 percent in 2025, a rise attributed in part to data center development. The legislation is currently under review by the Senate Environmental Conservation Committee.
**Why this matters**
Data centers require significant energy and water resources, which can influence local utility rates and environmental conditions. Several states, including Georgia, Maryland, Oklahoma, Vermont, and Virginia, have recently introduced similar measures to evaluate and manage the impact of expanding data center infrastructure. New York’s bill reflects growing attention to balancing technological growth with sustainable resource management.
Source: NewsData