Former President Donald Trump on Wednesday demanded New York reverse Gov. Kathy Hochul’s one‑year ban on large data center construction, arguing the moratorium will cost jobs and revenue amid an expanding AI infrastructure buildout.
President Donald Trump criticized New York Gov. Kathy Hochul’s executive order that bars construction of large‑scale data centers using 50 megawatts or more for up to one year, calling on the state to change the policy “immediately.” In a Truth Social post, Trump described data centers as a major future driver of jobs and state revenue and said Hochul’s move — which he attributed to political motives — halts projects already underway or planned in New York.
Market and political context
The moratorium was announced by Gov. Hochul as officials weigh public concerns over data centers’ fresh water and power use. Hochul said in a press release that she acted because “data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers,” and that it was her responsibility to take action and lead.
A national backlash has grown around the environmental and utility impacts of a rapid artificial intelligence buildout, including rising utility prices tied to increased power demand. Lawmakers and voters in multiple jurisdictions have raised affordability concerns as large data center projects expand. CNBC has reported on the broader debate over how data centers should cover their own water and power costs amid heightened demand.
What Trump said
Trump wrote that data centers are “big, strong, bold, and Money Machines for the State in which they are built,” and urged that data centers should “pay” for their own water and power, with leftover revenues returned to state and local communities. He called New York’s decision “terrible” and demanded an immediate policy reversal.
Why it matters
The moratorium is the first of its kind in the U.S. to limit construction of data centers above a specific power threshold for a fixed period. It could slow or pause planned large‑scale AI infrastructure investments in New York while officials assess environmental and utility impacts. The move also places state policymakers at the center of a contentious national debate about balancing AI infrastructure growth with local resource and affordability concerns.
Context & background
CNBC has reported rising utility prices linked to increased demand from AI and data center construction. The debate intersects with politics ahead of upcoming elections, as Democrats and other officials respond to constituent concerns about utility costs and resource use tied to large technology projects.
Official responses and next steps
Hochul said the moratorium is an effort to prevent increased utility bills and protect natural resources while the state evaluates large projects. CNBC has reached out to Hochul’s office for additional comment. The moratorium will remain in effect for up to one year unless changed by the governor or through other state action.
Key quotes
- From Trump (Truth Social): “One of the biggest Driving Forces in the Future for Jobs, are Data Centers… Governor Kathy Hochul, for political reasons, has terminated all Data Centers being built, or to be built, in New York State.”
- From Gov. Hochul (press release announcing the moratorium): “As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it’s my responsibility to take action and lead.”
Bottom Line for Traders
This moratorium introduces regulatory uncertainty for large‑scale data center developers and utilities in New York. It may slow new large AI infrastructure projects in the state while policymakers evaluate environmental and grid impacts — a factor investors and industry participants will watch as jurisdictions balance AI growth with resource and affordability concerns.
