The New York State legislature has passed a one-year moratorium on new large data centers, with Governor Kathy Hochul yet to sign it into law.

Lawmakers argue this pause will give them time to assess the environmental and financial impact of these energy-guzzling facilities. The ban directs an environmental impact report and requires companies planning such projects to fund public consultations before approval.

This follows a trend in other states, with Maine’s legislature passing a similar bill that Governor Janet Mills vetoed for lacking exemptions. New York faces 24 data center proposals, totalling over 9,000 megawatts, according to the New York Independent System Operator.

Industry groups fear this blanket moratorium could harm New York's economy by stalling potentially beneficial projects. However, some residents and lawmakers push back against what they see as a threat to local environmental integrity and energy prices.