President Donald Trump has launched a blistering attack on New York Governor Kathy Hochul for halting data center construction in the state, calling the decision a "terrible decision" that will hand the United States' artificial intelligence advantage to China. In a lengthy post on his Truth Social platform, Trump described data centers as "liquid gold" and a "cash cow" for job creation and tax revenue, warning that the policy shift will drive investment to lower-tax states and ultimately weaken America's position in the global tech race.
Trump Accuses Hochul of Political Motives
Trump directly accused Hochul of terminating all data center projects in New York for political reasons, arguing that the infrastructure is essential for driving employment and economic growth. He emphasized that data centers are among the biggest job creators and generate massive tax income for host states, comparing their value to that of oil. The president urged New York to reverse its stance immediately, claiming the state is losing out on a transformative economic opportunity.
Red States Poised to Benefit
According to Trump, tech companies seeking to expand their computing capacity are now turning to states like Alabama, Florida, Texas, and Arizona, which have lower taxes and welcome data center investments. He noted that these facilities pay their own utility costs and can even return surplus resources to local communities, creating a win-win for regions that attract them. "All of this revenue and other benefits will flow to red states and some blue states that view data centers as a cash cow," Trump wrote, highlighting the interstate competition for these projects.
National Security and AI Competition
Raising the stakes, Trump framed the issue as a matter of national security and global technological leadership. He warned that allowing "radical left" policies to block data centers would cede the United States' lead in artificial intelligence and other cutting-edge technologies to China and other rivals. The president called for an immediate policy change in New York, insisting that the state must not undermine America's ability to compete in the AI era.