Add Art 31 §§31-0101 - 31-0107, En Con L; amd §§65 & 89-b, add §114-b, Pub Serv L; add §1854-e, Pub Auth L;
add Art 19 §§19-101 - 19-105, Energy L; add §224-g, Lab L
Places a one year moratorium on the issuance of data center permits; requires utilities to establish an independent classification of service for large data centers; sets energy efficiency goals for data centers; provides for benefits for host communities; sets labor standards for the construction of data centers.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A11560
SPONSOR: Rules (Barrett) TITLE OF BILL:
An act to amend the environmental conservation law, the public service
law, the public authorities law, the energy law and the labor law, in
relation to enacting the responsible data center development act
PURPOSE OR GENERAL IDEA OF BILL:
To temporarily delay the development of data centers in the state while
their impacts are studied to ensure that future data center development
is paired with responsible measures to protect the financial, health,
and environmental well-being of local communities and ratepayers.
SUMMARY OF PROVISIONS:
§ 1: Names the act the "Responsible Data Center Development Act"
§ 2: Establishes a moratorium on issuing permits to data centers for one
year, requires hearings prior to data center permit issuances, and
requires the Department of Environmental Conservation (DEC) to prepare
an environmental impact report on data center development in the state.
§ 3: Amends Subdivision 5 of section 65 of the Public Service Law is
amended to require each electric corporation, gas corporation and muni-
cipality to establish an independent classification of service for large
energy use facilities.
§ 4: Amends Subdivision 5 of section 89-b of the Public Service Law to
require each water works corporation to establish an independent classi-
fication of service for large energy use facilities.
§ 5: Prohibits the Public Service Commission (PSC) from approving any
change of rates or related updates to a tariff after the effective date
of this act, unless such proposal includes a service classification for
large energy use facilities, and an adjustment mechanism in compliance
with this act. Requires the PSC to ensure all new or modified service
classifications and adjustment mechanisms are implemented no later than
June 1, 2030.
§ 6: Amends the Public Authorities Law by adding a new section 1854-e
authorizing NYSERDA, in conjunction with the federal bulk system opera-
tor, the PSC, and the NYS Climate Action Council, to determine reason-
able energy consumption efficiency goals for the design and operation of
data centers, including the recycling of waste heat.
§ 7: Adds a new article 19 to the Energy Law requiring data centers to
derive increasing percentages of their electricity consumption from
renewable energy systems, either via on-site production or power
purchase agreements.
§ 8 and§ 9 : Requires data centers, including within the Long Island
Power Authority service territory, to provide their host communities
with benefits including residential energy technologies and community
infrastructure as well as prevent adverse impacts on local waters.
§ 10: Establishes labor standards for the construction of data centers,
including prevailing wage and apprenticeship requirements.
§ 11: Establishes the severability of each section of this act.
§ 12: Sets the effective date.
JUSTIFICATION:
The rapid growth of data centers around the country, including New York,
is driving up electricity rates, putting a strain on the electric grid,
requiring additional fossil fuel usage, increasing water consumption,
and placing pressure on local utility infrastructure, the costs of which
often get passed on to ratepayers.
According to the New York Independent System Operator's (NYISO's) 2025
Power Trends report, data centers - fueled by the rise of Artificial
Intelligence (AI), machine learning, and cryptocurrency mining activ-
ities, are becoming major electricity consumers. By 2030 demand on the
electric grid could increase by an additional 1,600 megawatts (MW) to
nearly 4,000 MW, due primarily to a combination of new large loads and
building electrification. This additional demand will create a greater
need for energy grid investments, with the resulting costs borne by all
ratepayers.
Data centers disproportionately use fossil fuels rather than renewable
energy, with 56% of the electricity used to power data centers coming
from fossil fuels, resulting in data centers having an average carbon
footprint that is 48% higher than the US grid as a whole. Additionally,
a tripling of data centers nationwide would require the equivalent water
usage of 18.5 million households just for cooling the servers.
This bill would address these issues by pausing the creation of new data
centers in New York for one year, during which time the DEC and the PSC
would be required to study and report on impacts. The bill also ensures
that data centers are paying their fair share of costs associated with
electrical and water infrastructure and provide benefits to their local
host communities.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately
