New York Senate Bill S09182

New York 2025-2026 Regular Session

• Introduced: 2/11/26
• Refer: 2/11/26

Caption

Prohibits allocation of economic development power to data centers; provides for certain caps on amounts and eligibility for industrial development agency financial assistance; provides for the return of industrial development agency-awarded financial assistance if certain job levels are not maintained within 5 years of project completion; designates the department of environmental conservation as the mandatory lead agency for environmental quality review of any action consuming over 20 megawatts; requires environmental quality review for any action within 10 miles of a federally recognized Indian nation's territory.

Impact

The bill introduces significant amendments to existing economic development law, general municipal law, and environmental conservation law. One key provision requires agencies to implement policies for the return of financial assistance if certain job creation levels are not maintained within five years of project completion. This policy aims to ensure accountability and greater scrutiny of financial incentives provided to businesses. Additionally, the act makes the Department of Environmental Conservation the mandatory lead agency for any project that consumes over 50 megawatts during normal operations, signifying stricter oversight over high-energy projects.

Summary

Bill S09182, known as the 'Stop Subsidizing Data Centers Act', aims to prohibit the allocation of economic development powers to data centers. Specifically, the bill seeks to prevent any applications for economic power allocations for the operation of data centers. It defines a data center as a facility primarily housing telecommunications and data storage infrastructure. The intention behind this prohibition is to curtail the financial incentives previously extended to data centers, which supporters argue have not yielded significant benefits for local economies or job creation.

Contention

Notable points of contention surrounding S09182 revolve around the implications of restricting economic development for data centers and the potential impact on local economies. Critics of the bill argue that it could hinder technological growth and discourage investments in a key sector. Proponents claim that the current incentives for data centers do not yield the anticipated economic benefits and that resources could be better utilized elsewhere. The requirement for environmental impact statements for actions near federally recognized Indian territories also highlights the need for consultation and consideration of indigenous rights in development processes.