New York Could Limit Data Centers Amid Soaring Utility Bills

Feb. 5, 2026, 10:00 AM UTC

New York lawmakers want to place limits on data centers and other energy-intensive projects as the state’s electric grid operator warns of rising power demands in future years.

They have introduced at least nine new bills since January that would place restrictions on the development of such facilities, responding to constituent anger over rising utility rates.

Democrats including Gov. Kathy Hochul have focused on data centers’ energy usage, which along with semiconductor manufacturers could require over 2,500 megawatts of energy by 2035, according to a Jan. 29 report from the New York Independent System Operator.

Hochul said during her Jan. ...

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