Plattsburgh Weighs 12-Month Moratorium on Crypto Mining, AI Data Centers
Plattsburgh, New York, has long attracted energy-intensive businesses with access to relatively inexpensive hydropower, but their electricity demand has also raised concerns about grid capacity and higher costs for residents. In 2018, the city became the first US municipality to impose a moratorium on Bitcoin mining, halting new operations for 18 months. The latest debate broadens that concern to artificial intelligence data centers as surging computing demand puts local energy and land-use policies under renewed pressure.
City officials held a public hearing on a proposed 12-month land-use moratorium covering cryptocurrency mining operations and AI data centers drawing at least 300 kilowatts of power. The pause would give Plattsburgh time to review its rules for large electricity users before approving additional facilities. The measure has not yet taken effect because the mayor has not signed it. The City Council is scheduled to meet again on Sept. 17, when members are expected to continue deliberations over the proposal.
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The history behind this eventNew York Legislature Passes Bill for One-Year Freeze on New Data Center Permits
The rapid expansion of generative AI has fueled a wave of construction of power-hungry data centers, adding pressure from peak electricity demand, cooling-water use and carbon emissions. New York has consequently included data centers in a review of its energy and environmental policies. If the moratorium takes effect, New York would become the first U.S. state to restrict permits for new data centers, potentially reshaping AI infrastructure investment plans.
The New York State Legislature recently passed a bill that would suspend the issuance of permits for new data center construction for one year from its effective date. During that period, the state government would assess the facilities’ cumulative effects on the power grid, the environment and water resources. The bill still requires Governor Kathy Hochul’s signature and sets no minimum investment threshold. Whether permitting resumes after the one-year period will depend on the assessment’s findings.
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