BILL NUMBER: S9182
SPONSOR: MAY
 
TITLE OF BILL:
An act to amend the economic development law, the general municipal law
and the environmental conservation law, in relation to enacting the
"stop subsidizing data centers act"
 
PURPOSE:
To ensure that New York's economic development incentives are aligned
with long-term economic value, grid reliability, and environmental
responsibility by ending subsidies for large data centers that deliver
limited public benefit while imposing substantial energy and infrastruc-
ture costs.
 
SUMMARY OF PROVISIONS:
This bill makes focused adjustments to how the state evaluates and
supports energy-intensive development.
It removes data centers from eligibility for discounted state power
allocations. These programs are intended to support projects that gener-
ate substantial employment and broader economic activity, not facilities
that primarily rely on automated operations with minimal long-term job
creation.
It strengthens accountability for local tax abatements and other finan-
cial assistance by requiring agencies to recover subsidies when job
commitments are not met. It also places clear limits on public assist-
ance by capping the amount of aid per job created and by prohibiting
financial assistance for projects that, once completed, will consume
extraordinarily large amounts of electricity.
It provides for consistent, statewide environmental oversight of major
energy-using projects by designating the Department of Environmental
Conservation as the lead agency for projects above a defined electrici-
ty-use threshold.
It further requires a full environmental impact statement and consulta-
tion for projects proposed near federally recognized Indian nations,
ensuring that potential impacts are identified and addressed early and
transparently.
 
JUSTIFICATION:
New York continues to welcome large-scale investment and recognizes that
some energy-intensive projects can deliver transforniative economic
benefits when they create significant employment, strengthen regional
economies, and are built with robust environmental protections. Those
projects require careful planning, clear standards, and strong public
oversight, but they can be worth the investment.
Not every large energy user meets that test. Data centers present a
different profile. They typically require vast amounts of electricity
while creating relatively few permanent jobs. This large use of
resources places real pressure on the electric grid and contributes to
higher costs that are ultimately shared by households, small businesses,
and local governments, without the traditional benefit of good paying
jobs.
As electricity demand grows and infrastructure investment becomes more
expensive, the state must be more deliberate about how public subsidies
are used. Incentives should support projects that deliver broad and
durable economic value, not simply reward scale or energy consumption.
This bill reflects a course correction. It does not reject large or
complex development, and it does not oppose investment in New York.
Instead, it clarifies that projects seeking public support must justify
that support through meaningful economic returns and responsible use of
shared resources. By setting clearer boundaries and strengthening over-
sight, the state can promote growth that is both economically sound and
environmentally sustainable.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
The bill is expected to reduce foregone tax revenue and subsidy exposure
for projects with limited economic return and may help moderate future
utility cost pressures by reducing strain on the electric grid.
 
EFFECTIVE DATE:
This act shall take effect one hundred eighty days after it becomes law.

Statutes affected:
S9182: 187 economic development law, 874 general municipal law, 874(11) general municipal law, 8-0111 environmental conservation law, 8-0111(6) environmental conservation law, 8-0109 environmental conservation law