State Bill of Shame– May 2026: New York State Senate Bill S9144A

Introduced by New York State Senators Liz Krueger (D-NY-28), Kristen Gonzalez (D-NY-59), and others, New York State Senate Bill S9144A would implement a moratorium of more than three years on the issuance of permits for data centers. Additionally, the legislation would mandate that a minimum amount of data center electricity use come from renewables. It would also require costly environmental reviews and reporting, which would almost certainly deter data center construction. S9144A would effectively kill any data center construction proposal in the state of New York. 

The proposal would also place New York at a competitive disadvantage during a period of substantial technological expansion. States across the country have pursued pro-growth strategies intended to attract digital infrastructure, resulting in data center development that produces construction activity, bolsters tax revenue, supports infrastructure investments, and fuels overall economic growth. A three-year-plus delay effectively destroys the possibility of New York residents benefitting from a rapidly growing industry that pays blue-collar workers more than $200,000 per year. Once companies build large facilities and associated infrastructure elsewhere, those investments and supply chains become long-term commitments that are difficult to recapture. The practical result would be a lasting migration of investment outside the state.

The bill forsakes a market-based pro-innovation approach for a one-size-fits-all framework. The legislation itself recognizes concerns involving electricity demand, land use, water consumption, and grid impacts, but alleged impacts are vastly overstated and vary substantially depending on project location, power sourcing, and facility design. Some projects may utilize dedicated renewable generation, energy storage, or other mitigation measures that reduce (already minimal) strain on the grid. Prohibiting all new projects regardless of individual characteristics would prevent innovative approaches that address many of the concerns identified in the legislation.

Finally, the bill would almost certainly slow technological development and increase costs for New York consumers and businesses. Demand for computing capacity continues to expand because of AI applications, cloud services, and digital business operations. Restricting in-state capacity does not necessarily reduce demand; instead, it may shift activity elsewhere while requiring businesses and consumers to rely on infrastructure located outside New York.

It is for these reasons that S9144A is TPA’s State Bill of Shame for May 2026.