Data centers in New York

📜 State laws

Executive Order 62: state pause on big data center permits · July 14, 2026
On July 14, 2026, Governor Hochul signed Executive Order 62. It pauses state environmental permits from the Department of Environmental Conservation (DEC), such as air, water and wetland permits, for new or bigger data centers that use 50 megawatts or more. The pause lasts until the Department of Public Service (DPS) finishes a statewide environmental study (a Generic Environmental Impact Statement, or GEIS) and DEC gets its findings. The governor has said this takes about a year, but the order sets no end date. It does not apply to applications DEC called complete before July 14, or to data centers mainly used for manufacturing, research, schools and colleges (including Empire AI) or medical care. It does not stop town, village or city zoning votes or building permits. The order also tells DPS to start a data center grid working group, to find ways so other customers do not pay for grid upgrades, and tells DEC to review its water withdrawal rules within 12 months. Source

Responsible Data Center Development Act: passed, still waiting for the governor · June 4, 2026
The Legislature passed this bill (S.10642 / A.11560) on June 4, 2026. It would: pause DEC permits for one year for data centers of 20 megawatts or more; require a public hearing in the host community, paid for by the developer, with 30 days' notice; make DEC write a statewide report on data center water, power, air and noise impacts; make utilities create a separate rate class for big data centers; set energy-saving goals; require benefits for host communities; and set labor standards for construction. As of October 7, 2026, the Assembly record shows the bill passed both houses but has not been sent to the governor. The governor usually has until the end of the year to act. Law firms expect a veto or a rewrite because Executive Order 62 covers part of the same ground. Source

Energize NY Development: new rules for how data centers hook up to the grid · Sept 17, 2026
Governor Hochul announced Energize NY Development in her State of the State speech on January 13, 2026. On February 12, 2026, the Public Service Commission (PSC) opened Case 26-E-0045 to change how big electricity users like data centers connect to the grid and who pays for the upgrades. At the start, the grid operator had 48 large-load projects asking for more than 11 gigawatts (11,000 megawatts). On September 17, 2026, the PSC started the statewide environmental study ordered by Executive Order 62 and released a draft list of topics (air, water, groundwater, health, disadvantaged communities, farmland, noise, light, community character and more). Public comments on that draft are due October 20, 2026. By October 2026 the case had more than 11,000 public comments. Source

Community Investment Framework: $1 million per megawatt (a guide, not a law) · Sept 15, 2026
On September 15, 2026, Empire State Development released a Host Community Investment Framework, as Executive Order 62 asked. It suggests towns ask data center developers for at least $1 million in local investments for each megawatt of power (for example $50 million for a 50-megawatt site), for things like roads, water and sewer, housing, schools, child care and job training. It also suggests prevailing wages, local hiring, 'good neighbor' promises on water, noise and lighting, yearly public reports, and limiting secret deals (NDAs) to true trade secrets. It is voluntary: a template local officials can use when they negotiate. Source

Bills to ban secret deals (NDAs) on data centers · Sept 30, 2026
Several bills would limit secret deals. S.373 (Senator Gianaris) would ban secrecy clauses in state and local economic development deals, such as tax breaks and payments in lieu of taxes. A.11423 (May 2026) would make NDAs void when they stop people from talking about the water, power, tax breaks, noise or health effects of data centers and other big energy projects. S.10708 (Senator May, filed September 30, 2026) would bar towns, villages, cities and counties from signing deals that hide data center plans from the public (trade secrets excepted). None of these is law yet. Source

Governor wants to end tax breaks for big data centers · Oct 7, 2026
In July 2026 Governor Hochul said she wants to stop tax breaks for big 'hyperscale' AI data centers (50 megawatts or more), including the property, sales and mortgage tax breaks that local industrial development agencies (IDAs) give out, and to repeal the state sales tax exemption for large data centers. She said this could come in next year's state budget (spring 2027). Business groups oppose it. No bill has passed. Source

💡 Who pays for the power

Who pays for grid upgrades for data centers (being decided) · Oct 7, 2026
In Case 26-E-0045, the PSC is writing new rules for big electricity users. Executive Order 62 asks DPS to look at a 'beneficiary pays' approach (the company that needs an upgrade pays for it), a 'New York Grid Acceleration Fund' paid for up front by data centers, an insurance pool in case a data center leaves, and having data centers pay for their own clean power or batteries. In October 2026 the governor said data centers should supply their own power or pay a premium to use the grid. No final rates or formulas have been set. Source

How much power data centers are asking for · Sept 30, 2026
The state grid operator (NYISO) keeps a public list of big new electricity users. Its September 30, 2026 list has 40 data center requests (marked DAT, DAT-AI or DAT-CM) asking for about 11,900 megawatts in total. For comparison, the governor's office said in May 2026 there were nearly 12 gigawatts (12,000 megawatts) of data center requests. Not all of these will be built. Source

Con Edison bills going up 2026-2028 · Jan 2026
In January 2026 the PSC approved a three-year rate plan for Con Edison (Cases 25-E-0072 and 25-G-0073). Average electric bills go up about 3.5% in 2026, 3.2% in 2027 and 3.1% in 2028. The PSC said the plan cut Con Ed's original three-year request by about 87%. The PSC did not link this increase to data centers. Source

NYSEG and RG&E: big rate request, temporary rates for now · May 14, 2026
NYSEG and RG&E asked in June 2025 for large increases (about 24% to 26% on a typical home electric bill). On May 14, 2026, the PSC allowed only temporary increases from June 1, 2026: about 0.2% on a typical NYSEG home electric bill and 2.9% for RG&E. A final decision is still to come (Cases 25-E-0375 and 25-E-0379). Source

💵 Tax breaks

State sales tax break for 'internet data centers' (since 2000) · 2000
Under Tax Law 1115(a)(37) and 1115(y), operators of 'internet data centers' (secure buildings that host websites and keep them online all the time) do not pay state or local sales tax on servers, routers, software, racks, cooling, power and security equipment, and on installing and repairing them. They use Form ST-121.5. The governor wants to repeal this for large data centers. Source

Local IDA tax breaks: property, sales and mortgage tax · July 21, 2026
New York has about 106 local industrial development agencies (IDAs). They can give data centers property tax cuts (through payments in lieu of taxes, or PILOTs, shared by the county, town and school district), sales tax breaks and mortgage recording tax breaks. Examples: the Rockland County IDA approved about $77 million in sales tax breaks in 2024 for a JPMorgan Chase data center expansion in Orangeburg that promised one permanent job; H5 Data Centers in Lockport got about $478 million in property and sales tax breaks; Stream's project in Genesee County has asked for $1.46 billion. IDAs hold a public hearing before approving a deal. Every IDA project is listed in a state open data file. Source

🤐 Secret deals and public records

Secret deals (NDAs) are legal in New York for now · Oct 7, 2026
No New York law stops towns, counties, IDAs or state agencies from signing secret deals (NDAs) with data center developers. Bills to ban them (S.373, A.11423, S.10708) have not become law. The state's September 2026 Community Investment Framework only recommends limiting NDAs to true trade secrets. Source

How to get public records (FOIL) · Oct 7, 2026
Under New York's Freedom of Information Law (FOIL), any person can ask a state or local agency (a town, village, city, county, school district, IDA or state agency) for records. You do not have to say who you are or why. Send it in writing, by email or mail, to the agency's records access officer and write 'FOIL request' in the subject. The agency has 5 business days to answer, deny, or confirm it got your request and give a date, usually within 20 more business days. If denied, you can appeal in writing within 30 days; the appeal must be decided within 10 business days. After that you can go to court (an 'Article 78' case). Paper copies cost up to 25 cents a page; looking at records is free. Source

💧 Water

DEC water withdrawal permits (100,000 gallons a day) · July 14, 2026
In New York, anyone with a system that can take 100,000 gallons a day or more from a well, river or lake needs a water withdrawal permit from DEC, and must report its use every year. Withdrawals already approved by the Susquehanna or Delaware River Basin Commissions do not need a separate DEC permit but still report to DEC. Most data centers buy water from a town or city water system, so the local water system decides whether to serve them. DEC posts yearly water use by facility as open data. Executive Order 62 pauses new DEC permits for data centers of 50 MW or more and tells DEC to review its water rules by July 2027. Source

Susquehanna River Basin Commission (Southern Tier and central NY) · 2026
In the Susquehanna River basin (much of the Southern Tier and parts of central New York), a data center needs approval from the Susquehanna River Basin Commission (SRBC) if it takes 100,000 gallons a day or more, or uses up (evaporates) 20,000 gallons a day or more, averaged over 30 days. SRBC says hyperscale data centers with water cooling can evaporate millions of gallons a day. SRBC holds public hearings before it votes. Source

Delaware River Basin Commission (Catskills and lower Hudson border areas) · 2026
In the Delaware River basin in New York (parts of the Catskills and the upper Delaware River area), the Delaware River Basin Commission (DRBC) reviews projects that take more than 100,000 gallons a day on average over 30 days, or discharge more than 50,000 gallons a day of wastewater. DRBC holds public hearings on projects. Source

🌫️ Air and generators

DEC air permits for backup diesel generators · July 14, 2026
Data centers usually need a DEC air permit for their backup diesel generators. Most get an 'Air State Facility' permit with limits that keep pollution below the level that needs a stricter federal Title V permit. Example: DataBank LGA3 in Orangeburg got a draft permit for up to 18 large (3,000 kW) and 2 smaller diesel generators, capped at 24.5 tons of nitrogen oxides a year. DEC posts draft permits in its weekly Environmental Notice Bulletin with a public comment period. Executive Order 62 pauses new DEC permits for data centers of 50 MW or more. Source

Climate law can be used to deny permits (Greenidge case) · Nov 14, 2024
New York's climate law (the CLCPA) says state agencies must consider whether a permit fits the state's climate goals. In 2022 DEC denied the air permit renewal for Greenidge, a gas power plant in Torrey (Yates County) that runs bitcoin mining. In November 2024 a state court sent the case back to DEC because DEC had not done the full analysis, but it agreed DEC can deny a permit that does not fit the climate goals. Greenidge kept running. Source

Who approves new power plants and power lines · Oct 7, 2026
A new fossil fuel power plant of 25 megawatts or more (for example a gas plant to power a data center) needs a certificate from the state Siting Board under Article 10 of the Public Service Law, in one state process instead of local permits. Local members from the host town join the board for each case, and the developer must pay into a fund so towns and residents can hire experts. Solar and wind farms of 25 MW or more, and big power lines, go to the Office of Renewable Energy Siting and Electric Transmission (ORES) under the 2024 RAPID Act. ORES issues one permit that covers both state and local rules; towns must file a statement on whether the project meets their local laws, and the public can comment on draft permit conditions. Source

🙋 How to have your say

Who decides a data center near you · 2026
In New York, all land outside cities (and Indian reservations) is in a town. Cities zone their own land through the city council. Towns zone through the Town Board. Villages sit inside towns and zone their own land through the Village Board of Trustees. Counties do not zone, but the county planning board must review zoning changes near county roads, county land, state roads and town borders (a '239-m referral'). Planning boards approve site plans; the Zoning Board of Appeals (ZBA) decides variances and appeals. State DEC permits, power plants (Article 10) and the PSC are separate. Source

How a zoning change or a pause (moratorium) is passed · 2026
A town changes its zoning, or passes a pause (moratorium), by local law after a public hearing. There must be at least 10 days' public notice of the hearing. If the change is near a county road or a town line, it first goes to the county planning board, which has 30 days to answer. If the county says no, the town needs a majority plus one vote to pass it anyway. If owners of 20% of the land being rezoned, or of the land next to it or across the street, sign a written protest, the Town Board needs a three-fourths vote. Every action also needs a state environmental review (SEQR). Source

Deadlines to go to court · 2026
To challenge a decision of a Zoning Board of Appeals or a planning board (for example a site plan or special use permit), you must file an 'Article 78' case in state court within 30 days after the decision is filed with the town or village clerk (Town Law 267-c, 274-a and 274-b). The clock starts when the decision or even draft minutes are filed, so check the clerk's office right away. Other kinds of decisions can have different deadlines, so ask a lawyer early. Source

Speak at IDA tax break hearings · 2026
Industrial development agencies (IDAs) hold a public hearing before they give a project tax breaks. Watch your county IDA's website and the local newspaper for notices, and send written comments if you cannot attend. In the Rockland County JPMorgan Chase case, nobody came to the February 2024 hearing and the IDA approved about $77 million in breaks two weeks later. Source

Comment to the PSC on who pays for data center power · Sept 17, 2026
Anyone can comment to the Public Service Commission. Go to the DPS document search (dps.ny.gov, then 'Search for Case/Matter Number'), enter 26-E-0045, and use 'Post Comments'. Comments on the draft scope of the statewide data center environmental study are due October 20, 2026. You can also call the PSC for free language help at 1-800-342-3377. Source

Comment on DEC permits · 2026
DEC posts new permit applications (air, water, wetlands) in its weekly Environmental Notice Bulletin (ENB), with the comment deadline, usually 15 to 30 days. Search the ENB for your town or county and send comments to the DEC contact listed. Note: for data centers of 50 MW or more, DEC permits are paused under Executive Order 62. Source

🧾 Help with your bills

HEAP: help with heating and cooling bills · Dec 1, 2025
The Home Energy Assistance Program (HEAP) helps pay heating bills once a season, with emergency help if you face a shutoff or run out of fuel. In the 2025-2026 season (opened December 1, 2025) households could get up to $996. Apply online through myBenefits, at your county Department of Social Services, or by mail. Older adults can call NY Connects at 1-800-342-9871. Check the state HEAP page for the 2026-2027 season dates. Source

Energy Affordability Program: monthly bill discount · Jan 13, 2026
The big utilities (Central Hudson, Con Edison, National Fuel, National Grid, NYSEG, Orange & Rockland, PSEG Long Island and RG&E) give a monthly discount to lower-income customers, aiming to keep energy bills at or below 6% of income. If you get HEAP, SNAP, Medicaid, SSI or some other aid, you may be enrolled automatically; ask your utility. Since January 2026 an 'Enhanced' program also covers households below state (or local) median income; apply at nyeeap.com. Source

📞 Who to contact

Public Service Commission / Department of Public Service (PSC/DPS) · Oct 7, 2026
Sets utility rates and rules, runs the data center grid case (26-E-0045) and the statewide data center environmental study. Takes public comments and complaints. Source

Department of Environmental Conservation (DEC) · Oct 7, 2026
Issues air permits (generators, power plants), water withdrawal and wastewater permits. Posts notices in the weekly Environmental Notice Bulletin. Source

Empire State Development (ESD) · Oct 7, 2026
State economic development agency. Wrote the data center Community Investment Framework. Source

Siting Board (Article 10) and ORES · Oct 7, 2026
The Siting Board decides fossil power plants of 25 MW or more; ORES decides big solar, wind and power line projects. Source

New York Independent System Operator (NYISO) · Oct 7, 2026
Runs the state power grid and keeps the public list of big new power users, including data centers. Source

Committee on Open Government · Oct 7, 2026
Gives free advice on public records (FOIL) and open meetings law. Does not force agencies to release records. Source

Department of State, Division of Local Government · Oct 7, 2026
Free guides and training on zoning, planning boards and ZBAs for towns, villages and residents. Source

Susquehanna River Basin Commission (SRBC) · Oct 7, 2026
Approves large water use in the Susquehanna basin, including New York's Southern Tier. Source

Office of Temporary and Disability Assistance (OTDA) · Oct 7, 2026
Runs HEAP (help with heating and cooling bills). Source

New York State Senate and Assembly · Oct 7, 2026
Look up bills (S.10642/A.11560, S.373, A.11423, S.10708) and contact your senator and Assembly member. Source