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Key developments
New York passes data center permit pause
The New York State Senate and Assembly passed the Responsible Data Center Development Act, advancing a one-year pause on new permits for data center computing facilities that require 20 megawatts or more. The bill also defines data centers as facilities with at least 1 megawatt of peak demand, directs the Department of Environmental Conservation to study impacts on water supplies, agricultural land and e-waste, and would create a separate utility billing category for large-load customers. Supporters said the freeze is needed to assess environmental effects, while critics warned it could deter investment and transmission upgrades.
Why it matters
It would be one of the broadest state-level efforts yet to slow data center growth and shift more infrastructure costs onto the industry.
Sources & driving stories
THE HILL
The Hill coveragePritzker freezes Illinois data center incentives
Illinois Gov. J.B. Pritzker directed the Department of Commerce and Economic Opportunity to pause processing all new agreements under the Data Center Investment Program beginning July 1, 2026. Existing incentive agreements signed before that date will still be honored. The move follows his earlier proposal for a two-year suspension of state tax incentives and comes alongside a broader veto-session framework covering electricity rate classes, water permits, generator emissions limits, transparency rules and community benefits agreements.
Why it matters
Illinois is stopping a key subsidy channel for data centers while signaling that stricter statewide rules are coming next.
Sources & driving stories
STATE JOURNAL-REGISTER
State Journal-Register coverageCROKE FAIRCHILD DUARTE & BERES
Croke Fairchild Duarte & Beres coverageMonterey Park voters approve permanent data center ban
Monterey Park voters approved Measure NDC by more than 86% on June 5, creating a permanent citywide ban on data centers that can only be overturned by another public vote. The measure followed HMC StratCap's proposal for a roughly 247,000-square-foot facility near homes and a youth softball park. The company withdrew its application before the election, and the city council had already adopted an indefinite moratorium in April.
Why it matters
It is the first U.S. data-center ban enacted through the ballot box and could encourage similar local campaigns elsewhere.
Sources & driving stories
BROADBAND BREAKFAST · Georgina Mackie
Broadband Breakfast coverageWorth noting
WORTH NOTING
El Paso drafts data center rules
The city is taking public feedback by June 9 on a 33-page policy framework after voting to stop incentivizing data centers and facing backlash over Meta's water use and tax rebate.
WORTH NOTING
Seattle advances one year moratorium
Seattle's council moved forward on legislation that would halt large data center construction within city limits, adding to the wave of local restrictions.
Still unclear
OPEN QUESTION
Will Illinois turn the pause into law?
Pritzker's incentive freeze is immediate, but the broader rate, water and transparency rules still need legislative action in veto session.
OPEN QUESTION
Can local bans survive legal challenges?
Monterey Park's voter-approved ban and other city moratoriums may face preemption, zoning and ballot-language disputes.