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Legislation introduced last week could slow the development of new data centers in New York.
The bill would establish a three-year pause on siting and permitting of data centers while the Department of Environmental Conservation and the Public Service Commission report on the industry’s impact on the environment and on New York ratepayers.
Current and projected effects on energy use, electricity rates, water resources, air quality, greenhouse gas emissions, and electronic waste, as well as the cost of data centers, would be evaluated. The DEC would also be required to establish regulations to mitigate negative impacts.
The legislation was introduced by Assemblymember Anna Kelles, who represents an area including Ithaca and Cortland, and state Sen. Liz Krueger, whose district covers eastern Manhattan. They argue that data centers have put additional burden on an already strained electric grid, leading to a greater reliance on fossil-fuel “peaker” plants during periods of high demand.
Further, they contend, many data centers rely on water withdrawal systems, which can damage ecosystems through the discharge of large volumes of heated or chemically treated wastewater. Large amounts of electronic waste could also accelerate the capacity loss of New York’s landfills. All of these factors would put cost pressures on the average New York ratepayers.
Data center development has accelerated at a pace that has “outstripped existing planning, regulatory, and environmental review frameworks,” the bill’s authors believe, and therefore requires a slowdown.
“New York already has strong environmental and climate laws, but those laws only work if we take the time to understand cumulative impacts and regulate accordingly,” says Kelles. “This legislation creates a responsible pause so the state can complete a comprehensive assessment and put clear, data-driven standards in place, ensuring that any future development is aligned with our climate goals and the long-term health and economic stability of New Yorkers.”
“I commend Sen. Krueger and Assemblymember Kelles for listening to New Yorkers,” says Yvonne Taylor, vice president of Seneca Lake Guardian. “This bill not only safeguards our shared future here in New York, but sets a powerful precedent for states across the nation.”
Data centers have become a topic of interest in the Finger Lakes in recent years. In the town of Alabama, the Science and Technology Advanced Manufacturing Park, which includes a data center, has been in development for two decades. Last year, the site was hit with legal suits from the Tonawanda Seneca Nation and the Sierra Club.
For their part, the Genesee County Economic Development Center and STAMP stand by their environmental compliance, with online resources stating: “An underground discharge pipeline to Oak Orchard Creek would have minimal impacts on area waterways and communities and the necessary permits for its construction have been approved by the regulatory agencies, including (DEC).”
In Kelles’ backyard, the Maryland-based company TeraWulf in August announced its plan to convert the decommissioned Miliken power station on Cayuga Lake into an AI data center. Last week, the Tompkins County Legislature passed a resolution asking the DEC to reconsider TeraWulf’s request to draw over 1 million gallons of water a day.
TeraWulf continues to pursue outreach and community support for the project, publishing an independent assessment by professors from Cornell University and hosting an online webinar on it in December. The company also operates the Lake Mariner data center located by Lake Ontario near Lockport.
Information from Data Center Map puts the total number at 133 in New York, with large clusters around New York City and Buffalo. The Finger Lakes region currently has six.
“Data centers are expanding rapidly across the country and in New York, often with significant demands on our electric grid, water resources, and waste systems, and with real consequences for energy bills and climate pollution,” says Kelles.
“Communities across New York are being inundated with data centers at a faster pace than we can imagine,” Taylor adds. “These facilities pose a real threat to the environment and public health of residents, especially when communities are denied the transparent information and resources they need to understand the risks and protect themselves.”
Jacob Schermerhorn is a Rochester Beacon contributing writer and data journalist.
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A three-year moratorium on data centers may sound cautious, but in today’s AI-driven economy it would amount to economic self-sabotage.
Artificial intelligence infrastructure is not speculative—it is foundational. The states that permit and build it will capture the jobs, tax base, and long-term investment. The states that pause will watch capital flow to Ohio, Pennsylvania, Virginia, and Texas.
Upstate New York is uniquely positioned to do this responsibly. Rochester sits on Lake Ontario, where deep lake water cooling can reduce cooling energy use dramatically compared to traditional evaporative systems. We have carbon-free baseload power from nuclear and hydropower. We have legacy fiber infrastructure from Kodak and Xerox that already supports high-capacity connectivity.
If the concern is grid stress, the answer is better planning and proper cost allocation—not a blanket halt. Large data centers sign long-term power agreements and help finance new generation and transmission upgrades. They are not freeloaders; they are anchor customers.
If the concern is water use, closed-loop lake cooling systems can return water safely with minimal ecological impact. This is not theory—it is already being done successfully in other Great Lakes cities.
New York already has some of the strictest environmental review laws in the country. Strengthen standards if necessary. But a three-year freeze sends one clear message to investors: “Build somewhere else.”
AI is not slowing down. The only question is whether New York intends to participate in building its infrastructure—or simply consume it after others capture the economic benefits.
Yes! We have to stop these data centers. They use way too much energy and water. Even if they can produce their own energy and recycle all water, there are better uses for that enery and water.