Albany, NY – An omnibus bill on data centers, the Responsible Data Center Development Act, that includes a one-year moratorium on large data centers, and of which Assemblymember Shrestha is a cosponsor, has passed the New York State Assembly with a vote of 102-39 and is expected to pass in the Senate.

“Every technology has the potential to do good when used properly, but the aggressive push for Generative AI led by corporations like Meta, Google, and Amazon is designed to consolidate corporate power and displace workers,” said Assemblymember Shrestha in her floor speech as she voted Yes, “And to do so at the cost of immense energy consumption and disruptions caused by large data centers needed to provide the computing power. One project in Utah, for example, is estimated to have the footprint of roughly 2000 Walmart stores. The regulations we’ve passed today are the first necessary steps toward reigning in the intentions of these corporations, protecting ratepayers from high bills and an unreliable grid as a result of data centers, and giving the state some time to examine impacts and determine how to proceed.”

Provisions of the legislation are as follows:

• For large data centers with a peak demand of 20MW or more:
  • One-year moratorium
  • In-person public hearing at least three months before approval
  • A separate classification by the utility so as to not pass the costs to other customers
  • Host community benefits that can be further negotiated by the host locality
• An environmental impact report that examines water and electricity consumption, land use, pollution, waste, public funds, and more
• Reasonable energy consumption efficiency goals to align with the state’s climate goals
• Labor standards such as prevailing wage, apprenticeship agreements, US-made iron & steel, and more for data centers with a peak demand of 5 MW
• Renewable standards for data centers with a peak demand of 5 MW or more:
  • 2030 to 2034 — at least a third of electricity must be renewable
  • 2035 to 2039 — at least two-thirds of electricity must be renewable
  •  2040 and after — at least 90% of electricity must be renewable
  • Must derive as much of its energy needs as possible from on-site generation from renewable energy systems