New York lawmakers are advancing two major bills aimed at curbing the rapid advancement of AI in the state. The first bill examines the role of AI in newsrooms, while the other targets the growth of large data centres used in AI systems. Combined, the measures will help restore public trust in the media and ease the burden on the state’s power grid.

Both bills are under review in the legislative session of 2025-2026. They are a continuation of the prior efforts aimed at developing guidelines around AI, albeit with space for innovation.

The first proposal is the New York Fundamental Artificial Intelligence Requirements in News Act, also known as the NY FAIR News Act. The bill provides clear guidelines for news organizations to utilize generative AI.

New York Proposes Transparency Labels and Environmental Pauses

For their part, news sources would need to flag content considered “substantially authored or created” by AI, and the flag would need to be prominent and easy to read. The aim is to help readers understand if the content is generated by a machine on a large scale.

The bill also calls for human editing and reviewing to ensure accuracy before publication. The output of the artificial intelligence system may not be published without it passing human editing approval. According to the legislators, this step is crucial for the continuation of accurate and fair results and for instilling trust among users.

Assemblywoman Nily Rozic is sponsoring the bill, together with Senator Patricia Fahy. Before this, the bill had already been introduced in previous years, 2025, as S8451. The current bill contains updates from the 2025-2026 session.

They believe that it has the potential to assist newsrooms in being quicker, but if it is not properly controlled, it could result in more misinformation or incorrect information.

The bill does not ban AI in journalism. Instead, it sets transparency rules similar to those used for sponsored content or corrections. Lawmakers frame it as a way to protect readers rather than limit technology.

The second proposal, Senate Bill S9144, addresses the physical side of AI growth. It calls for a three-year pause on permits for new data centers larger than 20 megawatts.

The pause would stay in place until state agencies complete studies on environmental impact and electricity costs. Lawmakers say the rapid rise of AI infrastructure has outpaced planning and oversight.

Balancing the AI Boom with Grid Stability

New York already hosts more than 130 data centers. Many support cloud services and AI workloads. In the past year alone, requests for large power connections have tripled. Officials expect more than 10 gigawatts of new demand in the near future.

However, this surge puts a strain on the power grid. It may also increase the cost of electricity for both domestic consumers and smaller businesses. The backers of the bill, who are also lawmakers, say that consumers should not be burdened with an increase in bills because of unchecked development in AI infrastructure.

The proposed moratorium does not close existing data centers. Rather, it stops new large data centers from being approved. The smaller data centers, along with upgrades, can still be approved.

As can be deduced, the bills demonstrate the greater drive by New York to influence AI regulation. In 2025, Governor Kathy Hochul signed the RAISE Act, which set initial standards governing AI safety and accountability. Following this, there has been a move to further regulate some sectors.

They argue that states need to intervene owing to the limited scope of federal regulations. Some argue that states like New York, which have a large media and tech presence, are at risk.

Such rules also face the risk of stifling growth or driving companies to other states. Supporters of the bills say legislators can limit regulations to avoid stifling growth while also preventing unforeseen future harms.

New York’s Stance on the AI Resource Divide

As of February 2026, neither has yet passed the whole chamber and been signed into law. However, currently, it portrays a simple yet clear message. In fact, New York wishes to adopt AI but not without regulations that govern the division of resources and trust.

If these bills become law, they could influence the use of AI in the media field and the rate at which AI infrastructure grows in that particular field in other states too.