New York town freezes giant data centers until 2029 as residents warn of soaring power bills

After residents gathered outside East Fishkill Town Hall chanting, "We can't drink data," local officials voted unanimously to put the brakes on large data centers.

The three-year freeze reflects a growing trend of communities pushing back on AI-era infrastructure they fear could drive up electricity bills and strain local water supplies.

What happened?

On June 25, officials in East Fishkill, New York, approved a temporary policy that stops the town from reviewing or allowing data centers bigger than 20 megawatts until July 2029, according to WAMC.

The move came after Treetop Development floated plans for a 1,000-megawatt facility in the area. WAMC said that the project would have been more than 10 times larger than New York's biggest existing data center. Although the proposal no longer appears on the New York Independent System Operator's interconnection queue, residents still filled a public hearing to press town leaders to act.

Before the meeting, Rosemary DaCruz of For The Many warned, "It will use up and pollute our drinkable water sources, which I don't know if you know, but we literally need to survive." She added: "You know what we don't need to survive? A 1,000-megawatt data center. We can't allow it."

Town Supervisor Nick D'Alessandro said no formal proposal had been filed with the town, while resident Chris Frolick told officials, "I think it's very blatantly obvious, if there is nothing else you take away from this, we don't want it."

Why does it matter?

For people opposing the project, the issue is less about technology than about whether core utilities will stay accessible. They argued that Hudson Valley households already face steep electricity costs, and the town's resolution likewise points to concerns about higher energy bills.

Another major worry is water. The town cited existing water-quality problems, and WAMC reported that the area has been affected by three Superfund sites (eligible for federal cleanup funds and oversight due to a history of "hazardous waste being dumped, left out in the open, or otherwise improperly managed," according to the EPA).

That backdrop has made the prospect of a large, resource-intensive facility especially troubling for residents who depend on local drinking water.

The pause gives local leaders time to create clearer rules before new projects move forward.

Supporters of data centers argue that the facilities can bring tax revenue, construction jobs, and digital infrastructure needed for a growing economy. A common middle-ground approach is not a permanent ban, but stricter siting rules, stronger water and energy standards, and better community oversight before projects move ahead.

What's being done?

East Fishkill's moratorium runs two years longer than a possible state pause that, as WAMC reported, is still awaiting Gov. Kathy Hochul's signature after passing the Legislature. The town is also part of a broader pattern: Oneonta and other New York municipalities have enacted moratoriums, while Allegany and Dryden have adopted permanent bans on new data centers.

Before the vote, Councilmember Marianne Flores emphasized that the measure is temporary, not final. She said she hopes it creates space to "put in place a task force composed of town planning and zoning representatives, utility experts, environmental professionals, engineers, local business leaders, and residents" so future proposals can be evaluated transparently.

A task force could explore smaller-scale projects, water recycling requirements, cleaner energy sourcing, and locations better suited to heavy electricity demand.

Residents elsewhere in New York are raising similar concerns, including in Orangeburg, where Data Bank is seeking to expand an existing facility.

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