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S 9144

Imposes a moratorium on data center permit issuance; and relates to data center rate impacts

2025 Regular Session Introduced by Joe Addabbo and 16 co-sponsors

New York halts new data center permits temporarily to study and regulate impacts on energy, water, land use, emissions, and ratepayers, guiding future rules.

REFERRED TO ENVIRONMENTAL CONSERVATION
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Bill Summary · S 9144

Summary of Bill S. 9144 (2025-2026) – New York

Main purpose and intent

  • Establish a temporary moratorium on issuing new data center permits in New York state and require a comprehensive, state-led assessment of data center impacts on energy, water, land use, environment, and ratepayers.
  • Create a long-term framework to study and mitigate data center effects on electricity and gas rates, and to guide regulatory actions, with the overarching aim of aligning data center growth with environmental, water, land-use, and climate commitments.

Key provisions and changes

  • Moratorium on data center permits (Article 31):

    • No new permits for siting, construction, or operation of data centers may be issued by state agencies, local governments, or public benefit corporations until 90 days after the department issues implementing regulations and the Public Service Commission completes actions required under the Public Service Law.
    • Purpose: pause new data center development to allow regulatory and environmental review processes to catch up.

  • Generic Environmental Impact Statement (GEIS) (Section 31-0105):

    • The Department of Environmental Conservation (DEC), in coordination with the Department of Public Service (DPS) and the bulk system operator, must prepare a comprehensive GEIS on data center development.
    • Contents to study and recommend actions on:
    • Scale and location of existing and proposed data centers; growth projections.
    • Electricity usage, generation sources (fossil, nuclear, renewables, imports); effects on electricity and gas rates; interconnection queues; grid reliability; and utility capital spending.
    • Water usage and discharge for cooling; sources; rate impacts for water utilities; and projections with growth.
    • Land use: current acreage, rezoning, land values, farmland impacts, and tax implications within proximity to centers.
    • Pollution: greenhouse gas and other air pollutants, water pollution (including thermal), and noise levels at and around data centers.
    • Electronic waste generation and disposal/recycling practices.
    • A review of existing statutes and regulations governing data centers.
    • Projections for future growth may use data available at the time of the section’s effect; a final GEIS must be published no sooner than 18 months after enactment.
    • Draft GEIS to be posted publicly with at least 120 days for public comment, including at least one in-person hearing in multiple regions (Western NY, Finger Lakes, Southern Tier, Central NY, Mohawk Valley, North Country, Capital/Hudson Valley, City of NY, Long Island).

  • Regulatory actions post-GEIS (Section 31-0107):

    • No sooner than 3 years after the section’s effective date, DEC must issue final regulations to mitigate environmental impacts of data centers, guided by the GEIS.
    • Regulations should aim to minimize energy and water use, greenhouse gas emissions and other pollutants, and noise; require minimum use of on-site and off-site renewable energy and energy storage.

  • Data center rate impacts (Public Service Law, new §66-x):

    • DPS must issue a final report within 18 months after enactment analyzing:
    • Impacts of data centers on electricity and gas rates for residential, commercial, and industrial users.
    • Ways data center operators can minimize rate impacts without additional government spending.
    • Review of current statutes/regulations addressing rate impacts and potential actions the DPS can take, including possibly creating a new data center customer classification.
    • A draft report must be released prior to the final report, with at least 120 days of public comment.
    • After the final report, DPS may issue further orders to minimize rate impacts, ensuring that costs related to providing electricity and gas service to data centers (including new generation, transmission, distribution, wholesale price effects, and fuel price changes) are borne by the data centers. Orders must be informed by the GEIS and the DPS report.

  • Effective date and scope:

    • The act takes effect 30 days after becoming law.
    • It applies to all permits filed or pending after the effective date (existing applications may be exempt unless stated otherwise in future regulations).

Who/what is affected

  • Data centers and prospective developers: Subject to the moratorium and longer regulatory timeline; will face increased scrutiny under the GEIS and potential regulatory conditions on operations and energy use.
  • State agencies and local governments: Prohibited from issuing new data center permits for a 90-day window after regulations are issued and PSC actions are completed.
  • New York State Department of Environmental Conservation: Responsible for producing the GEIS and later final regulations.
  • New York State Department of Public Service: Collaborates on GEIS and analyzes rate impacts; issues final report and potential rate-related actions.
  • Bulk system operator: Involved in GEIS to assess interconnection and grid reliability impacts.
  • Electric and gas ratepayers (residential, commercial, industrial): Future rate designs and protections may be adjusted to reflect data center costs and mitigations recommended by the DPS.
  • Environmental and land-use stakeholders: Will have enhanced data on environmental impacts (water, land use, pollution, noise, wastewater/e-waste).

Procedural and timeline aspects

  • Public comment on the GEIS draft: at least 120 days.
  • Public hearings for GEIS: in multiple regions across the state.
  • GEIS finalization: no sooner than 18 months after enactment.
  • Final data center regulations: no sooner than 3 years after enactment.
  • DPS final report on rate impacts: within 18 months after enactment; followed by potential orders to allocate costs to data centers.
  • Moratorium on new permits: 90 days after DEC regulations and PSC actions are completed.

Notes

  • The bill is introduced with a broad environmental and rate-management purpose, balancing data center growth with climate, water resources, land use, and ratepayer protections.
  • It enlists substantial public engagement and long-term regulatory planning, emphasizing renewable energy integration, efficiency, and cost allocation.

Compiled from official sources — confirm details with the bill’s official record.

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