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NY set to pass one-year pause on data centers — but tech leaders warn it’s latest move to stifle economy

ny-set-to-pass-one-year-pause-on-data-centers-—-but-tech-leaders-warn-it’s-latest-move-to-stifle-economy
NY set to pass one-year pause on data centers — but tech leaders warn it’s latest move to stifle economy

Tech and business groups are calling on Gov. Kathy Hochul to reject a measure set to be passed in Albany Thursday that will block new data centers from coming online in New York for one year.

Groups like the Business Council of New York and Tech:NYC blasted Albany Democrats for ramming the measure through before wrapping their work for the year, arguing it will stymie economic growth.

Governor Kathy Hochul at a press conference on 2026 FIFA World Cup preparations.

Business groups are calling on Hochul to reject the ban on data centers. Matt Roberts/Shutterstock

Two protesters hold signs against data centers and AI in front of Orangetown Town Hall.

The bill would ban data centers for a year. LightRocket via Getty Images

“We believe that we can get this right and we believe that we should just put a pause on the application process and look at it,” Senate Majority Leader Andrea Stewart-Cousins (D-Westchester) told reporters Thursday, confirming her chamber would pass the bill.

“We don’t think data centers are going away, but we do think we can have a say,” she added.

Two protesters hold signs against data centers and AI in front of Orangetown Town Hall.

Participants seen holding signs at the protest. LightRocket via Getty Images

The bill would institute a one-year moratorium on permitting for new data centers of more than 5 megawatts.

Hochul has thrown cold water on statewide restrictions recently, saying permitting should be up to localities.

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