New York moves toward data centre moratorium as energy fears grow

Lawmakers in New York have proposed a three-year moratorium on permits for new data centres amid pressure to address the strain prominent AI facilities place on local communities.

The proposal mirrors similar moves in several other states and reflects rising concern that rapidly expanding infrastructure may raise electricity costs and worsen environmental conditions rather than supporting balanced development.

Politicians from both major parties have voiced unease about the growing power demand created by data-intensive services. Figures such as Bernie Sanders and Ron DeSantis have warned that unchecked development could drive household bills higher and burden communities.

More than 230 environmental organisations recently urged Congress to consider a national pause to prevent further disruption.

The New York bill, sponsored by Liz Krueger and Anna Kelles, aims to give regulators time to build strict rules before major construction continues. Krueger described the state as unprepared for the scale of facilities seeking entry, arguing that residents should not be left covering future costs.

Supporters say a temporary halt would provide time to design policies that protect consumers rather than encourage unrestrained corporate expansion.

Governor Kathy Hochul recently announced the Energize NY Development initiative, intended to modernise the grid connection process and ensure large energy users contribute fairly.

The scheme would require data centre operators to improve their financial responsibility as New York reassesses its approach to extensive AI-driven infrastructure.

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