New York Lawmakers on Track to Pause Data Center Construction

June 2, 2026, 4:04 PM UTC

New York lawmakers will approve a one-year ban on data center development and other guardrails amid residential concerns the large energy users could spike utility costs.

New legislation introduced late Monday night allows Democrats to pause permits for new data center development for a year, plus other guardrails, such as mandating energy efficiency goals and defining what utility rate class such facilities fall in.

“Yes, we intend to pass it,” Assembly Speaker Carl E. Heastie (D) said during a news conference on Tuesday. He added that lawmakers have been in conversation with Gov. Kathy Hochul (D) about the proposal.

Democrats have acknowledged the need to address voter concerns on data centers ahead of the November election, even as state leaders tout the economic development benefits from such facilities.

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