Trump Knocks Hochul’s Data Center Moratorium

ALBANY, New York — President Donald Trump blasted Gov. Kathy Hochul’s first-in-the-nation pause on data center construction, calling it “a terrible decision” that will hurt New York’s economy.

“Governor Kathy Hochul, for political reasons, has terminated all Data Centers being built, or to be built, in New York State,” Trump posted on Truth Social. “These Companies are now being sought in Alabama, Florida, Texas, Arizona, and many other States. Both the Taxes and the Jobs amount to LIQUID GOLD!”

The president added that New York “should change its Policy, IMMEDIATELY.”

Hochul responded to Trump with a social media post of her own.

“If data centers are really “LIQUID GOLD,” then New Yorkers deserve more than scraps,” she wrote. “We hit pause because the communities powering AI should share in its success. Maybe that’s a novel concept in Washington. We call it doing our job.”

The governor signed an executive order Tuesday that imposed a moratorium of up to 12 months for permitting large data centers in New York while state officials develop an environmental and regulatory framework for the facilities.

The order allows for data centers already in the permitting pipeline to proceed as well as those that will be used for health care or educational purposes, which generally use less power.

The governor acted following a sustained outcry from environmental organizations over the proliferation of the facilities, which require a tremendous amount of energy and water. Data center construction has boomed in states like Virginia and Texas as companies race to compete in the artificial intelligence sector.

But building them has sparked widespread backlash and turned into a red and blue state conundrum for policymakers as local-level bans are pushed by municipalities concerned about the impact on water usage and utility prices.

Even Republican governors and lawmakers in some of the states Trump mentioned are starting to rein in incentives for data center projects or imposing restrictions to address concerns around cost. Arizona has paused tax incentives. Texas Gov. Greg Abbott is also scrutinizing the impact of data centers on residential electricity costs.

Polls have shown that voters across the country are increasingly skeptical of data centers and the impact of AI. Hochul, who is seeking a second full term this year, framed her order as a way to responsibly manage energy consumption while still keeping the state business friendly.

“I want long-term job growth and I have to make sure I have the power in place to do this,” she told reporters Wednesday.

New York has far fewer data centers than other states, but Hochul’s order is seen as a potential blueprint for state-level action elsewhere in the country. Vermont Sen. Bernie Sanders praised Hochul’s move as a way to “understand the extraordinary impact” of AI.

Business organizations, including those in the construction sector, have decried the move, though, for its impact on jobs.

Democratic Pennsylvania Sen. John Fetterman, meanwhile, wrote on X that a moratorium “is China First” — underscoring concerns about keeping the U.S. competitive in the global race over AI.

Hochul’s order came weeks after the Democratic-dominated Legislature approved a broader 12-month moratorium for data center construction. The governor is yet to sign the bill and has signaled she wants to speak with lawmakers further about it. She also wants to end sales tax subsidies for data centers, a move that would require legislative action.

Marie J. French contributed to this report.