WASHINGTON (TNND) — President Donald Trump on Wednesday blasted New York Gov. Kathy Hochul (D) and her state over becoming the first in the nation to freeze construction of new data centers.
“One of the biggest Driving Forces in the Future for Jobs, are Data Centers,” Trump posted on Truth Social. “They are big, strong, bold, and Money Machines for the State in which they are built. Governor Kathy Hochul, for political reasons, has terminated all Data Centers being built, or to be built, in New York State.
“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! New York State has made a terrible decision. All of this Income, and other Benefits, will be going to Red States, and some Blue, where Data Centers are sought as Cash Cows, with Lower Taxes and Record Setting Jobs. They must pay for their own Water and Power, and any leftover goes back to the State and local Community,” he continued.
“Data Centers are tremendous WINS for the States and Communities that are lucky enough to get them. New York should change its Policy, IMMEDIATELY. The Radical Left Dumocrats must not be allowed to cause us to lose Data Centers, AI, and all of this incredible new Technology, to China, and other countries!”
Hochul will pause state environmental permits for data centers that can use 50 megawatts or more of power for “up to” a year to give New York time to establish a framework to protect the environment, energy grid, and help residents with their electrical bills, Hochul’s aides told reporters, The Hill reported.
Meanwhile, the Trump administration has pushed for more innovation, including the development of data centers that power the development and maintenance of artificial intelligence systems. Earlier this year, Trump announced an agreement with Big Tech companies to cover the cost of electricity they consume as AI development explodes.
Hochul’s freeze comes after the New York state legislature passed its own one-year moratorium on data centers last month. The bill, if enacted, would stop data center permits for “hyperscale” facilities, which it defines as those with a peak load of more than 20 megawatts. It is unclear whether Hochul plans to sign or veto that bill.
Democrats largely agree data centers are an issue, but are divided over the solution. Some antiestablishment Republicans also support these initiatives.