President Donald Trump sharply criticized New York Governor Kathy Hochul's new moratorium on large-scale data centers, calling for an immediate policy reversal in a Truth Social post on Wednesday. The executive order, signed Tuesday, halts construction of data centers using 50 megawatts or more of power for up to one year, making New York the first U.S. state to impose such a ban.
Trump described data centers as "Money Machines for the State" and argued the moratorium would cost jobs. He wrote that Hochul "for political reasons, has terminated all Data Centers being built, or to be built, in New York State." The president's comments come amid growing national debate over data centers' water and power consumption, as AI demand drives rapid infrastructure expansion.
Hochul defends moratorium
Hochul defended the pause, saying in a press release that data center development threatens to hike utility bills and deplete natural resources. "It's my responsibility to take action and lead," she stated. On X, she responded to Trump: "We hit pause because the communities powering AI should share in its success."
The moratorium reflects broader concerns about how data centers will shoulder their own power costs, a key issue ahead of midterm elections. Trump also urged that data centers "must pay" for their own water and power, with any surplus benefiting local communities.