Albany, NY — New York State Senator Kristen Gonzalez, Chair of the Senate Internet and Technology Committee, introduced S.10642, the Responsible Data Center Development Act, comprehensive legislation to address the environmental, economic, labor, and community impacts of large-scale data center development, and impose a one-year moratorium on permits for new data centers. 

As artificial intelligence drives an unprecedented demand for new hyperscale data centers, New York faces a critical choice: do nothing while approving new centers at the risk of increasing utility bills, straining our energy grid and our environmental resources; or implement a one-year moratorium that allows us to plan for responsible data center development. 

The Responsible Data Center Development Act brings together years of legislative work and prioritizes transparency, accountability, affordability, sustainability, and community benefits. This bill combines pieces of previously introduced bills like the New York Sustainable Data Centers Bill (S.6394A, Gonzalez), Accountability of Costs for Data Centers Act (S.8540, Gonzalez), and the Homegrown Energy Act (S.10546, Gonzalez), with the Data Centers Moratorium (S.9144A, Krueger & Gonzalez), regulations on water usage (S.10847, Comrie), and requirements for grid modernization (S.8546, May).

The introduction of an omnibus data centers bill in the final days of the 2026 legislative session reflects growing concerns across New York and around the country regarding the rapid expansion of energy-intensive data centers and AI infrastructure. While data centers play an increasingly important role in the modern economy, most centers do not pose the same strain of hyperscale centers on our grid. Therefore, the unchecked growth of these significantly larger energy facilities has raised questions about electricity demand, utility costs, environmental impacts, water consumption, land use, and grid reliability.

The Responsible Data Center Development Act, S10642, would: 

• Establish a one-year moratorium on new permits for large data centers with a peak load of over 20 Megawatts
• Require a public hearing with public comment in the local community prior to approval of any future permits
• Require the Department of Environmental Conservation to conduct an environmental impact report on data centers throughout the state to evaluate the number of data centers, energy and water usage, pollution, electronic waste, and other impacts
• Create a new electric rate class for data centers over 20 Megawatts
• Create a new water rate class for data centers over 20 Megawatts
• Establish energy efficiency goals for data centers with a peak load of over 5 Megawatts
• Create a host community benefit program that would require any data center operators with peak loads of over 20 Megawatts to make investments in the local community 
• Set labor standards for the construction of data centers with peak loads over 5 Megawatts to meet prevailing wage, work with apprenticeships and workforce training, and require all iron or steel used in construction to be made in the US

Senator Kristen Gonzalez said, "Technology should improve people's lives, not drive up utility bills, strain our energy grid, or undermine our climate goals.  I introduced this legislation alongside Assemblymember Barrett because New York State needs a comprehensive plan for responsible data center development. That is why a one year moratorium is so important—we must ensure communities have a voice, working people share in the benefits of new technology, and corporations pay their fair share of the costs.”