New York Governor Kathy Hochul and US President Donald Trump.
David Dee Delgado | Reuters | Saul Loeb | AFP | Getty Images
President Donald Trump on Wednesday condemned New York Gov. Kathy Hochul’s new data center moratorium, saying in a post on Truth Social that the state should change its policies “immediately” after imposing a ban of its kind in the first place in the United States.
“One of the biggest drivers of future employment will be data centers,” he wrote. “They’re big, they’re powerful, they’re bold, and they’re money machines for the states where they’re being built. Governor Kathy Hochul has eliminated all data centers that are being built or will be built in New York State for political reasons.”
A new state executive order signed by the governor on Tuesday bans construction of large data centers using more than 50 megawatts of electricity for up to one year.
“New York State made a terrible decision,” President Trump wrote on Wednesday.
A national backlash over fresh water and power consumption in data centers is growing as demand for artificial intelligence soars and fueling a frenzy of infrastructure development while utility bills continue to rise.
“With data center development threatening to increase utility costs, deplete natural resources, and create uncertainty for New Yorkers, it is my responsibility to take action and lead,” Hochul said in a press release announcing the suspension.
Concerns about how data centers will be able to pay for their power costs are widespread ahead of the midterm elections, as Democrats take aim at affordability issues and residents’ anger over new facilities lingers.
Trump’s post also claimed that data centers “have to pay” for their own water and power, with the rest going back to states and local communities.
Hochul responded to the president with his own post about X.
“We paused because the AI community needs to share its successes,” Hochul said. “It’s probably a new concept in Washington. We call it getting the job done.”
