New York and Michigan Lawmakers Push One-Year Data Center Construction Moratoriums

New York lawmakers approved a bill on June 5, 2026, that would impose a one-year moratorium on permits for data centers drawing 20 megawatts or more. The legislation now awaits Governor Kathy Hochul's signature. In Michigan, a state senator has proposed a similar one-year statewide moratorium, mirroring a bill introduced by a Republican colleague earlier this year.

The New York bill, sponsored by Assemblymember Anna Kelles, passed the Assembly on Thursday and the Senate on Friday. It requires data centers to meet prevailing wage standards, shift to renewable energy sources, and contribute to community benefit agreements. The moratorium would give regulators time to assess environmental, energy, and ratepayer impacts.

Michigan's Parallel Effort

Michigan Senator Sue Shink introduced a bill that would halt new data center construction for one year. The text matches a proposal from Republican Senator John Damoose, filed earlier in 2026. Both bills target facilities over 20 MW and require studies on grid capacity, water usage, and local economic effects.

Key provisions in both states include:

• One-year pause on permits for data centers with peak loads of 20 MW or more.
• Mandatory renewable energy sourcing: 33% by 2030, 66% by 2035, and 90% by 2040 in New York.
• Prevailing wage requirements for construction and maintenance workers unless covered by collective bargaining.
• Community benefit requirements, including support for local renewable energy projects and wastewater infrastructure.

Industry Pushback and Economic Stakes

Business groups in New York, led by Tech:NYC, urged Hochul to veto the bill. They argue the moratorium was rushed through without proper debate and will deter investment. Republican Assemblymember Phil Palmesano noted that the Micron chip fab in Clay, New York, received tax incentives and would create 50,000 jobs, while data centers are being singled out.

In Michigan, the Michigan Economic Development Corporation has not taken a public position. Data center developers warn that a moratorium could push projects to neighboring states like Indiana or Ohio, which have no such restrictions. The bills come as AI-driven demand for computing power drives a surge in data center proposals across the Great Lakes region.

Governor Hochul has not indicated whether she will sign the New York bill. Her spokesperson said she would review the legislation. Michigan's bill is still in committee. If either moratorium becomes law, it could set a precedent for other states grappling with the energy and environmental costs of the data center boom.