Kings County
For Kings County, see New York’s statewide laws and regulations below. No additional county-specific measures are listed in our research.
This restriction takes precedence while in effect. The rating below excludes temporary restrictions.
Pro-Data Center Policies
New York exempts qualifying data centers from sales taxes on certain equipment and services, subject to security and web-hosting conditions. An enacted order is also described as pausing some state environmental permits for new or expanded centers pending review, while excluding local permits and existing operations.
Incentives
Tax benefits
Qualifying Internet data center operators receive state and local sales and use tax exemptions for eligible equipment and related services.
current law · StatewideExempts qualifying purchases from New York sales and compensating use tax, including computer hardware used predominantly for software development or website design under § 1115(a)(35), and machinery, equipment, and other tangible personal property used by qualifying New York internet data centers under § 1115(a)(37).New York Tax Law § 1115(a)(35), (37) — Internet Data Center Sales and Use Tax Exemption
What this means
The measure offers a meaningful financial benefit by exempting qualifying data centers from sales and use taxes on important equipment and related services, including servers, cooling, and power equipment (covered property). The benefit is limited to centers that meet specific security and web-hosting requirements, and centers primarily selling internet access are excluded (eligibility limits), so it is substantial for eligible projects but not broadly available to all data centers.
People behind it
- New York State Department of Taxation and Finance
Administers the Internet data center sales-tax exemptions by issuing Form ST-121.5 and related guidance.
Restrictions & requirementsHide restrictions & requirements9
To qualify for the Internet data center exemption, the facility must be specifically designed and constructed as a high-security environment for servers and similar equipment that host Internet websites.
The operator must provide uninterrupted access to customers’ webpages 24 hours a day, 7 days a week, 365 days a year, and continuously manage Internet traffic for those webpages.
An operator does not qualify if more than 50% of the use of the otherwise qualifying data-center property is devoted to selling the operator’s own Internet access service.
Property qualifies for the exemption only if it is located or installed in the New York data center, required for, and directly related to providing Internet website services for sale.
Exempt services are limited to installing, maintaining, servicing, or repairing qualifying property, maintaining or repairing qualifying real property, and protective or detective services provided directly to or in relation to exempt data-center property.
When services cover both exempt and taxable property, the exempt portion must be allocated using a reasonable method and separately stated on the invoice; otherwise, the entire invoice may be taxable.
Contractors, subcontractors, and repairers may purchase qualifying property tax-free only when it will become part of a capital improvement at the Internet data center.
Operators must provide the seller with a properly completed Form ST-121.5 exemption certificate. The certificate must generally be delivered no later than 90 days after delivery of the property or service, and sellers must retain it for at least three years after the applicable return due date or filing date, whichever is later.
A blanket exemption certificate must be reviewed when the exempt percentage for services changes; a new certificate is required for subsequent purchases when the percentage changes.
Benefits & exceptionsHide benefits & exceptions6
Sales and use tax exemption for qualifying machinery, equipment, software, and other tangible personal property purchased by an Internet data center operator. The property must be placed or installed at a New York data center and be required for and directly related to providing Internet website services for sale. Covered items include servers, routers, software, storage equipment, fiber-optic and copper cabling, cooling equipment, fire-suppression systems, generators, power conditioners, security equipment, and raised flooring. qualifying property
Sales and use tax exemption for services performed directly on or in relation to qualifying data-center property, including installation, maintenance, servicing, and repair of tangible personal property; maintenance, servicing, and repair of qualifying real property; and protective or detective services. services rendered directly to or in relation to the property
Contractors, subcontractors, and repairers may purchase qualifying data-center property or related services tax-free in specified circumstances. Property purchases qualify only when the property will become part of a capital improvement to the data center’s real property; qualifying installation, maintenance, servicing, and repair services may also be purchased exempt. contractors may purchase qualifying tangible personal property
The exemption extends to only the reasonably allocable portion of services provided to property that is partly exempt and partly taxable. Acceptable allocation methods include square footage, time, or property values, and the exempt amount must be separately stated on the invoice. an allocation may be used
Data-center operators can document exempt purchases using Form ST-121.5, including as a blanket certificate for subsequent purchases of the same general type of property or service. A certificate must contain the required information and generally must be provided to the seller within 90 days after delivery. Form ST-121.5
Eligibility is available to facilities specifically designed and constructed as high-security environments for servers hosting Internet websites, provided the operator supplies uninterrupted access to customers’ webpages and continuously manages Internet traffic. The exemption does not apply if more than 50% of the relevant property’s use is for the operator’s own retail Internet access service. high security environment
Sources
current law · StatewideEstablishes a temporary statewide moratorium on covered data-center development while New York develops higher standards and a framework for community benefits, addressing concerns about energy and water use, environmental and public-health effects, disadvantaged communities, and utility and ratepayer risks.New York Executive Order No. 62 (2026)
What this means
The measure would pause certain state environmental permits for data center construction or expansion until a statewide review is finished, which could significantly delay projects. It does not stop existing centers from operating, and local permits are excluded; the measure also offers no immediate benefits that offset the delay.
Timing
- Ends
- Until DPS submits its report of the final Generic Environmental Impact Statement and associated findings statement
The moratorium covers specified discretionary state permits before DEC, not local-government permissions. Development of the environmental review is expected to take up to one year. No extension condition is stated, and the expiration of other provisions is not specified.
People behind it
- Kathy Hochul
Issued and signed Executive Order 62, establishing the moratorium.
- New York State Department of Public Service (DPS)
Directed to prepare the environmental review and carry out related grid and interconnection work.
- New York State Department of Environmental Conservation (DEC)
Responsible for pausing certain discretionary permits and assessing data-center water-withdrawal requirements.
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- Empire State Development (ESD)
Directed to develop and publish the Community Investment Framework for localities.
- Public Service Commission
Proposed interconnection reforms, instituted the related proceeding, and served as lead agency for the environmental review.
Restrictions & requirementsHide restrictions & requirements1
Until DPS submits its final Generic Environmental Impact Statement and findings statement, DEC must hold in abeyance applications for discretionary DEC permissions to construct or expand covered data centers if the applications were pending or later submitted and had not been determined complete before the order. The moratorium may last up to one year; it does not cover local-government permissions or applications already deemed complete. Covered facilities generally consume or can consume at least 50 MW, with exceptions for facilities primarily used for manufacturing, research, education, or medical care.
Benefits & exceptionsHide benefits & exceptions6
DEC’s temporary hold does not cover applications it determined complete before the order’s date, so those applications may continue through the process. determined to be complete
The moratorium provision does not apply to local-government permits or approvals, so those remain outside that hold. does not apply to permits
Facilities primarily used for manufacturing, research, education, or medical care are excluded from the order’s definition of a data center and are not subject to it. Some educational facilities must meet specified conditions, including academic research at eligible New York colleges and universities. is not covered by this definition
DPS must form a working group to address interconnection issues and support efficient interconnection for large new customers, including data centers. It must also consider “beneficiary pays” principles for network-upgrade and resource-adequacy costs. support efficient interconnection
DPS is directed to consider a Grid Acceleration Fund to finance grid improvements and clean-energy supply, potentially including generation or battery storage dedicated to data-center operations. This is a possibility for DPS to assess, not a guaranteed benefit, and data centers may be required to contribute. dedicated to their operations
The moratorium ends once the state finalizes its new standards; projects may then proceed if they meet those standards and applicable zoning and other local approval requirements. The moratorium will be lifted
Sources
pending · StatewideWould regulate data-center development and its environmental, utility, community, and labor impacts, but remains a proposed measure rather than binding law; the bill was passed by both houses and returned to the Assembly without being shown as signed by the governor (legislative actions and bill text).New York A11560 (2025-2026)
What this means
The bill would pause permits for large data centers for one year, with limited exceptions, making new construction and expansion much harder during that time. It would also add ongoing costs and requirements for utilities, clean energy, community benefits, public hearings, and construction wages.
Timing
- Ends
- one year after the effective date of this section
The moratorium applies to permits and other approvals for large data centers. It does not apply to modifications, renewals, reissuances, or recertifications of previously issued approvals, or to large data centers already under construction when the section takes effect. Other provisions remain; no extension condition is stated.
People behind it
- Committee on Rules
Bill sponsor and introducing body; introduced the bill at the request of Barrett, Kelles, Tapia, and Glick.
- Barrett
Named in the sponsor listing and requested the bill’s introduction.
- Anna Kelles
Co-sponsor and requester of the bill’s introduction.
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- Yudelka Tapia
Co-sponsor and requester of the bill’s introduction.
- Deborah Glick
Co-sponsor and requester of the bill’s introduction.
- William Magnarelli
Co-sponsor.
- Sarah Clark
Co-sponsor.
- Phara Souffrant Forrest
Co-sponsor.
- Gabriella Romero
Co-sponsor.
- Micah Lasher
Co-sponsor.
- Alex Bores
Co-sponsor.
- Sarahana Shrestha
Co-sponsor.
- Marcela Mitaynes
Co-sponsor.
- Harry B. Bronson
Co-sponsor.
- Emily Gallagher
Co-sponsor.
- Donna Lupardo
Co-sponsor.
- Diana Moreno
Co-sponsor.
- Michael Cashman
Co-sponsor.
- Steven Otis
Co-sponsor.
- Rebecca Kassay
Co-sponsor.
- Jonathan Jacobson
Co-sponsor.
- Steve Stern
Co-sponsor.
- MaryJane Shimsky
Co-sponsor.
- William Conrad
Co-sponsor.
- Karen McMahon
Co-sponsor.
- Paula Kay
Co-sponsor.
- Linda Rosenthal
Co-sponsor.
- Anil Beephan Jr.
Co-sponsor.
- Patrick J. Carroll
Co-sponsor.
- Tommy Schiavoni
Co-sponsor.
- Maritza Davila
Co-sponsor.
- Tony Simone
Co-sponsor.
- Emerita Torres
Co-sponsor.
- Dana Levenberg
Co-sponsor.
- Amy Paulin
Co-sponsor.
- Jonathan Rivera
Co-sponsor.
- Brian Cunningham
Co-sponsor.
- Grace Lee
Co-sponsor.
- Jen Lunsford
Co-sponsor.
- Nikki Lucas
Co-sponsor.
- Department of Environmental Conservation
Responsible for preparing the environmental impact report and administering permit and hearing requirements.
- Public Service Commission
Responsible for utility classifications and adjustment mechanisms, and for establishing the host-community benefits program.
- Department of Public Service
Coordinates on public hearings and has responsibilities related to implementation.
- Department of Health
Consults on the environmental impact report.
- Environmental Facilities Corporation
Consults on the environmental impact report and host-community benefits program.
- Federally designated bulk system operator
Consults on the environmental impact report and coordinates on energy-cost adjustments and efficiency goals.
- Empire State Development Corporation
Consults on the environmental impact report and host-community benefits program.
- Authorities Budget Office
Consults on the environmental impact report.
- New York State Energy Research and Development Authority
Consults on the host-community benefits program.
- New York State Climate Action Council
Works with other entities to determine data-center energy-efficiency goals.
- Long Island Power Authority
Required to establish a host-community benefits program for large data centers in its service territory.
- The Authority
Works with other named entities to determine and annually update data-center energy-efficiency goals.
- Electric corporations, gas corporations, water-works corporations, and municipalities
Required to establish separate service classifications for large data centers and allocate related costs to those classifications.
- Commissioner
Defined as the fiscal officer responsible for enforcing construction labor standards, except for specified New York City projects.
- Comptroller or other analogous officer of New York City
Serves as fiscal officer for qualifying projects performed under permits issued by a city with a population over one million.
- Kristen Gonzalez
Democratic
Working Families
Sponsor of the Senate bill.
- Samra G. Brouk
Democratic
Working Families
Co-sponsor of the Senate bill.
- Patricia Fahy
Democratic
Working Families
Co-sponsor of the Senate bill.
- Pete Harckham
Democratic
Working Families
Co-sponsor of the Senate bill.
- Robert Jackson
Democratic
Working Families
Co-sponsor of the Senate bill.
- Liz Krueger
Democratic
Working Families
Co-sponsor of the Senate bill.
- Rachel May
Democratic
Working Families
Co-sponsor of the Senate bill.
- Jessica Ramos
Democratic
Working Families
Co-sponsor of the Senate bill.
- Jose M. Serrano
Democratic
Working Families
Co-sponsor of the Senate bill.
- Lea Webb
Democratic
Working Families
Co-sponsor of the Senate bill.
- Jeremy J. Zellner
Democratic
Co-sponsor of the Senate bill.
Restrictions & requirementsHide restrictions & requirements10
For one year after the section takes effect, the Department of Environmental Conservation may not issue a permit or other approval to a large data center, defined as one with peak demand of at least 20 MW. Exceptions cover modifications, renewals, reissuances, or recertifications of existing approvals and centers that began construction by the effective date. A press summary describes a three-year moratorium, but the detailed bill text specifies one year.
Before receiving Department of Environmental Conservation approval, a large data center must hold an in-person hearing in at least one host community at least three months beforehand, give residents at least 30 days’ notice with specified project information, and pay hearing expenses, including agency costs.
Large data centers must be placed in separate electric, gas, and water service classifications. These classifications assign the facilities specified service, infrastructure, administrative, operating, and related costs, including attributable commodity-price increases, to the data centers rather than other customers. The Public Service Commission generally may not approve rate or tariff changes without the required classifications and cost-adjustment mechanism; implementation is due by June 1, 2030.
Regulations may require financial surety for utility or water service to large data centers, such as insurance, a guarantee, a surety bond, a letter of credit, or qualification as a self-insurer.
Operators must meet energy-consumption efficiency goals, which may include waste-heat recycling goals and are reviewed annually. Operators already operating when the provision takes effect have two years to comply; those starting within the following year have one year to comply.
Data centers with peak loads of at least 5 MW must annually obtain independent verification of renewable-energy procurement: at least one-third of electricity use in 2030–2034, two-thirds in 2035–2039, and 90% from 2040 onward. They must also annually demonstrate that they obtain as much of their energy needs as is technologically, environmentally, and practically feasible from on-site renewable generation.
Each new large data center, and an existing large data center expansion adding at least 20 MW of load, must fund a host-community program for eligible residential technologies, community infrastructure, and measures to prevent specified water and wastewater harms. The program includes community engagement and independently audited annual financial reports.
As part of the host-community benefits process, a data center must hold at least one hearing in a host community, provide an opportunity for public comment, and pay the hearing expenses, including agency costs.
Construction of a data center with peak demand of at least 5 MW, including an expansion that brings it to that threshold, is subject to prevailing-wage requirements, except for qualifying projects under pre-hire collective-bargaining agreements. Owners or developers must also require apprenticeship agreements or workforce training where no apprenticeship program exists, and covered iron and steel must meet specified U.S.-production requirements.
Community-infrastructure projects funded under the host-community benefits provision with construction costs of at least $1 million are subject to prevailing-wage requirements, subject to listed exceptions including qualifying collective-bargaining agreements and specified residential projects.
Benefits & exceptionsHide benefits & exceptions7
Data centers with peak demand below 20 megawatts are not classified as large data centers and are outside the one-year permit moratorium, which applies to large data centers.
Facilities majority-owned, operated, or controlled by a public research institution and used for research are excluded from the bill’s definition of a data center, so the data-center provisions do not apply to them.
The one-year moratorium does not bar modifications, renewals, reissuances, or recertifications of previously issued approvals, or large data centers that began construction by the section’s effective date.
For construction of a data center with peak demand of at least 5 megawatts, prevailing-wage requirements do not apply when the work is performed under a qualifying pre-hire collective bargaining agreement.
In industries without apprenticeship programs, an owner or developer may require workforce training instead of apprenticeship agreements; training is preferably done with a bona fide labor organization.
Operators have two years to meet energy-efficiency goals if their centers are already operating when the provision takes effect, and one year if their centers begin operating within the following year.
For data centers with peak loads of at least 5 megawatts, renewable-energy procurement requirements phase in: at least one-third of electricity for 2030–2034, two-thirds for 2035–2039, and 90% from 2040 onward.
Sources
pending · StatewideWould pause new permits for covered data centers while New York evaluates environmental, infrastructure, community, and utility-rate impacts; the proposed bill applies to facilities capable of using at least 20 megawatts of electricity (bill text).New York S9144A (2025-2026)
What this means
If enacted, the bill would block new permits for data centers able to use at least 20 megawatts until 90 days after state environmental rules and utility actions are completed; those rules cannot be issued sooner than three years after the law takes effect, and the bill sets no maximum waiting period. It exempts renewals and changes to existing permits, but would make new projects substantially harder and could require data centers to bear the costs of their electricity and gas service, so the net effect is a severe restriction rather than an outright ban.
Timing
- Ends
- 90 days after the Department issues regulations under § 31-0107 and the Public Service Commission completes all actions required under § 66-x
The moratorium applies to permits for siting, construction, or operation of a data center; it does not apply to modification, renewal, reissuance, or recertification of previously issued approvals. The bill states no extension condition. Other provisions remain. The moratorium’s ending condition
People behind it
- Liz Krueger
Democratic
Working Families
Sponsor of the Senate bill.
- Kristen Gonzalez
Democratic
Working Families
Co-sponsor.
- Joseph P. Addabbo Jr.
Democratic
Co-sponsor.
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- April Baskin
Democratic
Co-sponsor.
- Jabari Brisport
Democratic
Working Families
Co-sponsor.
- Samra G. Brouk
Democratic
Working Families
Co-sponsor.
- Cordell Cleare
Democratic
Co-sponsor.
- Leroy Comrie
Democratic
Co-sponsor.
- Patricia Fahy
Democratic
Working Families
Co-sponsor.
- Nathalia Fernandez
Democratic
Co-sponsor.
- Michelle Hinchey
Democratic
Working Families
Co-sponsor.
- Robert Jackson
Democratic
Working Families
Co-sponsor.
- Brian Kavanagh
Democratic
Co-sponsor.
- Rachel May
Democratic
Working Families
Co-sponsor.
- Zellnor Myrie
Democratic
Co-sponsor.
- Gustavo Rivera
Democratic
Working Families
Co-sponsor.
- Rob Rolison
RepublicanCo-sponsor.
- Julia Salazar
Democratic
Working Families
Co-sponsor.
- James Sanders Jr.
Democratic
Co-sponsor.
- Jose M. Serrano
Democratic
Working Families
Co-sponsor.
- Lea Webb
Democratic
Working Families
Co-sponsor.
- Jeremy J. Zellner
Democratic
Co-sponsor.
- Department of Environmental Conservation
Tasked with preparing the environmental impact report and promulgating regulations.
- Department of Public Service
Consulted in preparing the environmental impact report and data-center regulations.
- Department of Health
Consulted in promulgating data-center regulations.
- Public Service Commission
Tasked with reporting on data-center rate impacts and issuing orders to address those impacts.
- Federally designated bulk system operator
Consulted in preparing the environmental impact report.
Restrictions & requirementsHide restrictions & requirements3
A moratorium bars state and local agencies and public benefit corporations from issuing permits or other approvals for siting, construction, or starting operation of a data center capable of using at least 20 megawatts. It remains in effect until 90 days after the Department of Environmental Conservation issues regulations and the Public Service Commission completes its required actions. It does not apply to modification, renewal, reissuance, or recertification of an already-issued approval. The permit moratorium and exception
The Department must complete an environmental impact report before issuing new or updated data-center regulations, and cannot issue those regulations sooner than three years after the section takes effect. The regulations must be additional to existing requirements and are to address energy use, pollution, noise, water use, burdens on disadvantaged communities, and minimum use of renewable electricity and energy storage. The timing and required scope of the regulations
No sooner than three years after enactment, the Public Service Commission must issue any additional orders needed to minimize data centers’ impacts on electricity and gas rates and require data centers to bear all costs of providing and maintaining their electric and gas service, including associated infrastructure and market costs. Costs shall be borne by the data center
Benefits & exceptionsHide benefits & exceptions2
Previously issued permits may be modified, renewed, reissued, or recertified during the moratorium. The moratorium does not apply to previously issued approvals.
Facilities below the 20-megawatt threshold are outside the bill’s definition of a data center, unless they are part of a qualifying aggregated site. The definition sets a 20-megawatt threshold.
Sources
pending · StatewideWould regulate large data-center development in New York by imposing a one-year approval moratorium for facilities with peak demand of at least 20 megawatts, requiring host-community hearings, and directing the Department of Environmental Conservation to prepare a statewide environmental-impact report.New York S10642 (2026)
What this means
The bill would block DEC permits for new large data centers for one year, while exempting projects already under construction, so it is a major but temporary barrier—not a complete ban. After that, large centers would face new utility-rate and community-benefit requirements, and facilities of 5 MW or more would have renewable-energy and construction-labor obligations, adding ongoing costs and compliance work. One-year permit moratorium
Timing
- Ends
- one year after the effective date of this section
The moratorium applies to permits and other approvals for large data centers. It excludes modifications, renewals, reissuances, or recertifications of previously issued approvals and centers already under construction by the effective date. The bill states that the act takes effect immediately; no expiration is specified for its other provisions.
People behind it
- Kristen Gonzalez
Democratic
Working Families
Sponsor of Senate bill S10642.
- Samra G. Brouk
Democratic
Working Families
Co-sponsor of S10642.
- Patricia Fahy
Democratic
Working Families
Co-sponsor of S10642.
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- Pete Harckham
Democratic
Working Families
Co-sponsor of S10642.
- Robert Jackson
Democratic
Working Families
Co-sponsor of S10642.
- Liz Krueger
Democratic
Working Families
Co-sponsor of S10642.
- Rachel May
Democratic
Working Families
Co-sponsor of S10642.
- Jessica Ramos
Democratic
Working Families
Co-sponsor of S10642.
- Jose M. Serrano
Democratic
Working Families
Co-sponsor of S10642.
- Lea Webb
Democratic
Working Families
Co-sponsor of S10642.
- Jeremy J. Zellner
Democratic
Co-sponsor of S10642.
- Didi Barrett
Sponsor of Assembly bill A11560; the Assembly version was introduced at her request.
- Anna Kelles
Co-sponsor of A11560; the Assembly version was introduced at her request.
- Yudelka Tapia
Co-sponsor of A11560; the Assembly version was introduced at her request.
- Deborah Glick
Co-sponsor of A11560; the Assembly version was introduced at her request.
- William Magnarelli
Co-sponsor of A11560.
- Sarah Clark
Co-sponsor of A11560.
- Phara Souffrant Forrest
Co-sponsor of A11560.
- Gabriella Romero
Co-sponsor of A11560.
- Micah Lasher
Co-sponsor of A11560.
- Alex Bores
Co-sponsor of A11560.
- Sarahana Shrestha
Co-sponsor of A11560.
- Marcela Mitaynes
Co-sponsor of A11560.
- Harry B. Bronson
Co-sponsor of A11560.
- Emily Gallagher
Co-sponsor of A11560.
- Donna Lupardo
Co-sponsor of A11560.
- Diana Moreno
Co-sponsor of A11560.
- Michael Cashman
Co-sponsor of A11560.
- Steven Otis
Co-sponsor of A11560.
- Rebecca Kassay
Co-sponsor of A11560.
- Jonathan Jacobson
Co-sponsor of A11560.
- Steve Stern
Co-sponsor of A11560.
- MaryJane Shimsky
Co-sponsor of A11560.
- William Conrad
Co-sponsor of A11560.
- Karen McMahon
Co-sponsor of A11560.
- Paula Kay
Co-sponsor of A11560.
- Linda Rosenthal
Co-sponsor of A11560.
- Anil Beephan Jr.
Co-sponsor of A11560.
- Patrick J. Carroll
Co-sponsor of A11560.
- Tommy Schiavoni
Co-sponsor of A11560.
- Maritza Davila
Co-sponsor of A11560.
- Tony Simone
Co-sponsor of A11560.
- Emerita Torres
Co-sponsor of A11560.
- Dana Levenberg
Co-sponsor of A11560.
- Amy Paulin
Co-sponsor of A11560.
- Jonathan Rivera
Co-sponsor of A11560.
- Brian Cunningham
Co-sponsor of A11560.
- Grace Lee
Co-sponsor of A11560.
- Jen Lunsford
Co-sponsor of A11560.
- Nikki Lucas
Co-sponsor of A11560.
- Assembly Committee on Rules
Introduced A11560 at the request of Assembly Members Barrett, Kelles, Tapia, and Glick.
- New York State Department of Environmental Conservation
Would administer large-data-center permits and prepare the statewide environmental impact report.
- New York State Public Service Commission
Would oversee utility rate classifications and adjustment mechanisms, and establish the host-community benefits program.
- New York State Department of Public Service
Would coordinate on large-data-center hearings and bear hearing-related costs specified in the bill.
- New York State Department of Health
Would consult on the statewide environmental impact report.
- New York State Environmental Facilities Corporation
Would consult on the environmental impact report and host-community water-impact measures.
- Federally designated bulk system operator
Would consult on the environmental impact report and participate in the electricity-cost adjustment mechanism and efficiency-goal process.
- New York State Climate Action Council
Would help determine data-center energy-consumption efficiency goals.
- New York State Energy Research and Development Authority
Would consult on the host-community benefits program.
- Empire State Development Corporation
Would consult on the environmental impact report and host-community benefits program.
- Authorities Budget Office
Would consult on the environmental impact report’s review of public funds and incentives received by data centers.
- Long Island Power Authority
Would establish a host-community benefits program for large data centers in its service territory.
- The authority
Would determine data-center energy-consumption efficiency goals, including waste-heat recycling goals.
- Electric corporations, gas corporations, municipalities, water-works corporations, and municipal water systems
Would establish separate large-data-center service classifications and assign applicable service costs to those classifications.
- Fiscal officer
Would have enforcement jurisdiction over construction labor requirements; the bill defines this as the Commissioner, with a city comptroller or analogous officer for qualifying city-permitted projects.
Restrictions & requirementsHide restrictions & requirements8
For large data centers with peak demand of at least 20 MW, the Department of Environmental Conservation may not issue a permit, certificate, license, or other approval for one year after the provision takes effect. Exceptions cover renewals or modifications of existing approvals and centers that began construction by the effective date. No permit, certificate, registration, license, or other form of approval
Before receiving a permit or other approval, a large data center must hold at least one in-person public hearing in a host community at least three months before approval. Residents must receive at least 30 days’ advance notice, and the operator must pay the hearing expenses. not less than three months before the issuance
Large data centers—those with peak demand of at least 20 MW—must be placed in separate electric, gas, and water service classifications. These rates and terms must allocate the facilities’ attributable infrastructure, administrative, operational, and other specified costs to them, and adjustment mechanisms must pass through attributable commodity-cost increases. The classifications and mechanisms must be implemented by June 1, 2030. assign the costs incurred
Data centers with peak loads of at least 5 MW must meet renewable-energy procurement targets, verified annually by an independent third party: at least one-third for 2030–2034, two-thirds for 2035–2039, and 90% from 2040 onward. They must also obtain as much energy as technologically, environmentally, and practically feasible from on-site renewables. at least ninety percent
Data-center operators must comply with energy-efficiency goals, including goals for recycling waste heat, developed by the authority and reviewed annually. Operators already operating when the provision takes effect have two years to comply; operators beginning operation within the following year have one year. shall determine reasonable energy consumption efficiency goals
A new large data center, or an existing large data center undergoing a major expansion adding at least 20 MW of load, must fund a host-community program for residential technologies, community infrastructure, and measures to prevent specified water and wastewater impacts. The Public Service Commission must establish the program, with community input; the operator must submit independently audited financial reports annually. shall fund a program
Construction or expansion of a data center with peak demand capacity of at least 5 MW is subject to prevailing-wage requirements, apprenticeship or workforce-training requirements, and a requirement that iron and steel used in construction be produced or made wholly or substantially in the United States. The prevailing-wage exception applies to projects under qualifying pre-hire collective bargaining agreements. peak demand capacity of five megawatts or more
Community-infrastructure projects funded under the host-community program with construction costs of at least $1 million are subject to prevailing-wage requirements, subject to specified exceptions, including qualifying pre-hire collective bargaining agreements and certain residential projects. total construction cost of not less than 1 million dollars
Benefits & exceptionsHide benefits & exceptions5
The one-year permit moratorium does not apply to large data centers already under construction on or before its effective date. The exception for centers commencing construction preserves their ability to proceed.
The moratorium also does not bar modification, renewal, reissuance, or recertification of a previously issued permit, allowing covered facilities to pursue those permit actions during the moratorium. The exception for previously issued permits
Covered data centers—those with peak demand of at least 5 megawatts—are generally subject to prevailing-wage rules for construction, but that requirement does not apply when construction or expansion is performed under a qualifying pre-hire collective bargaining agreement. The collective-bargaining exception can reduce that labor-cost obligation.
Data center operators receive time to meet energy-efficiency goals once those goals are set: operators already operating have two years to comply, while operators that begin operating within one year after the relevant effective date have one year. The compliance periods
For data centers with peak loads of at least 5 megawatts, renewable-electricity procurement thresholds are phased in rather than required immediately: one-third for 2030–2034, two-thirds for 2035–2039, and 90% beginning in 2040. The staged renewable-energy targets
Sources
pending · StatewideWould require large energy-use facilities, including computing facilities with peak demand of at least 20 megawatts, to bear the full costs of serving them rather than shifting those costs to other ratepayers.New York S8540A (2025-2026)
What this means
The bill would require data centers with peak demand of at least 20 MW to pay a separate share of service costs, including infrastructure and operating costs, which could make building or expanding them more expensive (costs assigned to the large-facility class). It does not ban projects or add permitting delays, and financial guarantees are only something the department may require, so the added burden is meaningful but limited (financial surety requirements).
People behind it
- Kristen Gonzalez
Democratic
Working Families
Senate sponsor of S8540A and named sponsor in the bill materials.
- Samra G. Brouk
Democratic
Working Families
Senate co-sponsor and one of the senators identified as introducing the measure.
- Patricia Fahy
Democratic
Working Families
Senate co-sponsor and one of the senators identified as introducing the measure.
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- Andrew Gounardes
Democratic
Senate co-sponsor and one of the senators identified as introducing the measure.
- Liz Krueger
Democratic
Working Families
Senate co-sponsor and one of the senators identified as introducing the measure.
- Jessica Scarcella-Spanton
Democratic
Listed as a Senate co-sponsor of the active measure.
- Toby Ann Stavisky
Democratic
Senate co-sponsor and one of the senators identified as introducing the measure.
- Barrett
Assembly sponsor of the companion bill A9039B.
- Clark
Assembly co-sponsor of A9039B.
- Burdick
Assembly co-sponsor of A9039B.
- Conrad
Assembly co-sponsor of A9039B.
- Kelles
Assembly co-sponsor of A9039B.
- Magnarelli
Assembly co-sponsor of A9039B.
- Kay
Assembly co-sponsor of A9039B.
- Lupardo
Assembly co-sponsor of A9039B.
- Tapia
Assembly co-sponsor of A9039B.
- McDonald
Assembly co-sponsor of A9039B.
- Weprin
Assembly co-sponsor of A9039B.
- Shrestha
Assembly co-sponsor of A9039B.
- Levenberg
Assembly co-sponsor of A9039B.
- Reyes
Assembly co-sponsor of A9039B.
- Santabarbara
Assembly co-sponsor of A9039B.
- Dilan
Assembly co-sponsor of A9039B.
- Rosenthal
Assembly co-sponsor of A9039B.
- Davila
Assembly co-sponsor of A9039B.
- Forrest
Assembly co-sponsor of A9039B.
- Woerner
Assembly co-sponsor of A9039B.
- Rozic
Assembly co-sponsor of A9039B.
- Shimsky
Assembly co-sponsor of A9039B.
- Steck
Assembly co-sponsor of A9039B.
- McMahon
Assembly co-sponsor of A9039B.
- Buttenschon
Assembly co-sponsor of A9039B.
- Lavine
Assembly co-sponsor of A9039B.
- Griffin
Assembly co-sponsor of A9039B.
- Colton
Assembly co-sponsor of A9039B.
- Cook
Assembly co-sponsor of A9039B.
- Schiavoni
Assembly co-sponsor of A9039B.
- Lunsford
Assembly co-sponsor of A9039B.
- Carroll P
Assembly co-sponsor of A9039B.
- Kassay
Assembly co-sponsor of A9039B.
- Simone
Assembly co-sponsor of A9039B.
- Simon
Assembly co-sponsor of A9039B.
- Slater
Assembly co-sponsor of A9039B.
- Hooks
Assembly co-sponsor of A9039B.
- Gallagher
Assembly co-sponsor of A9039B.
- Solages
Assembly co-sponsor of A9039B.
- Paulin
Assembly co-sponsor of A9039B.
- Stern
Assembly co-sponsor of A9039B.
- Powers
Assembly co-sponsor of A9039B.
- Anderson
Assembly co-sponsor of A9039B.
- Dinowitz
Assembly co-sponsor of A9039B.
- Cunningham
Assembly co-sponsor of A9039B.
- Hevesi
Assembly co-sponsor of A9039B.
- Public Service Commission
Administers the measure by approving service classifications, establishing adjustment mechanisms, and ensuring implementation.
- Department of Public Service
May promulgate regulations concerning financial surety requirements for large energy use facilities.
- Federally designated bulk system operator
Coordinates with the Public Service Commission on the required adjustment mechanism.
- Electric corporations
Must establish and file the required service classifications and implement approved classifications and adjustment mechanisms.
- Gas corporations
Must establish and file the required service classifications and implement approved classifications and adjustment mechanisms.
- Municipalities
Must establish and file the required service classifications and implement approved classifications and adjustment mechanisms.
Restrictions & requirementsHide restrictions & requirements5
Facilities with a peak demand of 20 megawatts or more used for computing infrastructure, data processing, web hosting, streaming support, or related functions must be placed in a separate service classification from other utility customers. The commission shall require ... an independent classification of service for large energy use facilities
The separate classification must assign entirely to covered large energy use facilities the costs of infrastructure upgrades, improvements, additions, and operating expenses needed to provide and maintain their service, while also assigning attributable rate-of-return costs to them and protecting other customer classes from related fixed-charge or surcharge increases. assign the costs incurred ... to serve large energy use facilities
The Public Service Commission, coordinating with the federally designated bulk system operator, must establish and annually update an adjustment mechanism requiring covered facilities to bear costs attributable to increases in commodity prices, including transmission service fees. shall establish, implement, and annually update an adjustment mechanism
The Department may adopt financial-surety requirements as a condition of providing service to large energy use facilities, including insurance, guarantees, surety bonds, letters of credit, or qualification as a self-insurer. may promulgate regulations regarding financial surety requirements
After the act takes effect, the Public Service Commission may not approve a utility or municipal request to change rates or update a tariff unless the proposal includes the required large-energy-use-facility classification and compliant adjustment mechanism. not approve any change of rates or related updates to a tariff
Sources
pending · StatewideWould regulate proposed data centers with projected energy-use capacity of at least five megawatts to reduce energy and water consumption, fossil-fuel reliance, emissions, pollution, waste heat, and community impacts; the measure has not become law and its bill text would make it effective one year after enactment.New York S6394A (2025-2026)
What this means
The bill applies to large data centers projected to use 20 or more megawatts and requires advance disclosures, public hearings, and annual reports, adding compliance work and some project lead time. It also sets efficiency goals and penalties for reporting violations, but does not ban development or set a firm limit on data center operations.
People behind it
- Kristen Gonzalez
Democratic
Working Families
Primary sponsor of the Senate measure and an introducing senator.
- Rachel May
Democratic
Working Families
Senate co-sponsor and introducing senator.
- Patricia Fahy
Democratic
Working Families
Senate co-sponsor of the active version of the measure.
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- Public Service Commission
Administers disclosure-report publication, public proceedings, data-center surcharges, and energy-affordability bill credits.
- Department
Receives required disclosure reports and is authorized to issue regulations and enforce reporting requirements.
- Attorney General
Authorized to enforce the measure's data-center reporting provisions.
- The authority
Works with the bulk system operator, Public Service Commission, and Climate Action Council to establish and update data-center energy-efficiency goals.
- Federally designated bulk system operator
Collaborates in developing data-center energy-consumption efficiency goals.
- New York State Climate Action Council
Collaborates in developing energy-efficiency goals aligned with the Climate Leadership and Community Protection Act.
- Electric utility corporations
Implement the regulated data-center surcharge and transfer proceeds for energy-affordability bill credits.
Restrictions & requirementsHide restrictions & requirements11
Regulated data centers—those projected to have an energy-use capacity of at least five megawatts—must submit a disclosure report to the Department and Public Service Commission at least 180 days before beginning construction.
The preconstruction disclosure report must include the proposed facility’s location and type, employment and workforce information, projected energy use and sources, off-site carbon-dioxide-equivalent emissions, waste heat, and applicable water use and discharges.
The Public Service Commission must publish the disclosure report within 10 days, and the operator must hold at least two public hearings within 60 days after submitting it, including at least one hearing in the host community.
Operators must provide host-community residents at least 30 days’ advance notice of the hearings, and a draft disclosure report must be publicly available at least 30 days before the first hearing.
Regulated data center operators must submit annual disclosure updates covering changes in operations, energy and water use, fossil-fuel and renewable-energy efforts, pollution, waste heat, and host-community employment; the Commission must post each report within 15 days.
Operators that fail to comply with the disclosure requirements receive 60 days to cure the violation; afterward, they may face fines of up to $10,000 and an additional $10,000 for each day of continued noncompliance.
Energy-consumption efficiency goals for data center design and operation must be established within one year, including possible waste-heat recycling requirements. Existing operators have two years to comply, while operators that began operating within one year after the act’s effective date have one year.
Power-purchase agreements for fossil-fuel-generated energy may not provide regulated data centers with economic incentives or discounts.
Regulated data centers must obtain increasing amounts of energy through power-purchase agreements exclusively for renewable energy: at least one-third by 2030, at least two-thirds by 2035, and all energy by 2040.
The Public Service Commission must establish a surcharge on all regulated data centers sufficient to cover transmission and distribution upgrades needed for their grid interconnection and operation, as well as directly resulting increases in energy-supply costs.
Electric utilities must implement the regulated-data-center surcharge within one year after the act’s effective date, and the Commission must review and update it every three years.
Benefits & exceptionsHide benefits & exceptions2
Data centers projected to use less than five megawatts are excluded from the definition of a “regulated data center.” As a result, they are not subject to the measure’s regulated-data-center disclosure, public-hearing, annual-reporting, surcharge, or renewable power-purchase requirements, although other requirements may still apply.
Existing data center operators receive up to two years to comply with newly developed energy-consumption efficiency goals. Operators that began operating within one year before the measure’s effective date receive one year to comply, delaying the operational burden of those goals.
Sources
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