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Key developments
New York Legislature approves data-center moratorium
The New York Legislature approved a sweeping bill on June 5 that would impose a one-year moratorium on new large-scale data centers. If Gov. Kathy Hochul signs it, New York would become the first state with a statewide moratorium on new data centers. The measure also adds renewable-energy, labor, and household-cost provisions as lawmakers respond to AI-driven infrastructure growth.
Why it matters
It would set a national precedent for state-level limits on new data-center buildout.
Sources & driving stories
E&E NEWS BY POLITICO
E&E News by POLITICO coverageIllinois freezes new data-center tax incentives
Gov. JB Pritzker said Illinois will stop processing new data-center tax incentive applications on July 1 while lawmakers build a broader framework in the fall veto session. The proposal follows concern about energy affordability and water use, and Pritzker wants public notices, energy- and water-use reporting, and other guardrails. State reports cited in coverage say 27 data centers received more than $983 million in incentives from 2020 to 2024.
Why it matters
Illinois is using subsidies and disclosure rules as leverage over one of the country’s biggest data-center markets.
Sources & driving stories
STLPR
STLPR coverageCAPITOL NEWS ILLINOIS
Capitol News Illinois coverageERCOT flags voltage-trip failures at large loads
Reuters reported that ERCOT found four groups of large electricity users, including data centers and crypto facilities, failed voltage ride-through tests tied to routine voltage disturbances. ERCOT said it reviewed about 20 gigawatts of large-load requests, identified fault conditions that could cause more than 5,000 megawatts of demand to trip in each case, and has logged at least 26 abrupt disconnection events since 2023. The grid operator is tightening interconnection and performance requirements as peak summer demand approaches.
Why it matters
Large data centers are increasingly a grid-stability issue, not just a load-growth issue.
Sources & driving stories
REUTERS
Reuters coverageWorth noting
WORTH NOTING
Jackson County approves AI data-center moratorium
County commissioners in Florida imposed a one-year pause to study environmental and economic impacts after residents raised clean-water, noise, and power-cost concerns.
WORTH NOTING
Allen Park denies 26-megawatt site plan
The Michigan planning commission rejected Solstice Data’s proposal after repeated delays over missing engineering, water-use, and sound-study materials.
WORTH NOTING
Water reuse becomes siting prerequisite
A new legal analysis says recycled and reclaimed water systems are becoming central to cooling design, permitting, and long-term operations for data centers.
Still unclear
OPEN QUESTION
Will Hochul sign New York's moratorium?
Signature would turn the legislature's vote into the first statewide pause on new data centers and force a broader policy reset.
OPEN QUESTION
Can ERCOT enforce ride-through rules fast enough?
If large-load developers keep failing disturbance tests, Texas may need either delays or tighter technical standards before summer peak.