Former President Donald Trump criticized Gov. Kathy Hochul’s one‑year moratorium on large data centers, arguing the policy will cost jobs and urging immediate reversal as debate grows over power and water use for AI infrastructure.
President Donald Trump on Wednesday blasted New York Gov. Kathy Hochul after the state issued an executive order pausing construction of certain large-scale data centers for up to one year. In a Truth Social post, Trump said New York should change the moratorium “IMMEDIATELY,” calling data centers “one of the biggest Driving Forces in the Future for Jobs” and describing them as economic engines for states that host them.
What happened
- Gov. Hochul’s executive order bars construction of large data centers that use 50 megawatts or more of power for up to a year. The pause is intended to give state officials time to assess the impact of new facilities on utilities, natural resources and local communities.
- Trump accused Hochul of halting “all Data Centers being built, or to be built, in New York State” for “political reasons” and said the state made a “terrible decision.”
Why It Matters
The moratorium comes amid growing public concern about how rapid data center buildouts to support artificial intelligence will affect electricity prices, fresh water supplies and local infrastructure.
New York’s move makes it the first U.S. state to impose a pause of this kind, drawing immediate national political attention and sparking debate over economic development versus environmental and affordability concerns.
Context & Background
Officials cited the potential for large-scale data center projects to increase utility bills and strain natural resources as the rationale for the pause. In a press release announcing the moratorium, Gov. Hochul framed the action as leadership to prevent higher costs and resource depletion for New Yorkers.
The controversy over data centers has become a broader political issue ahead of upcoming elections, as community complaints and utility cost concerns surface in multiple states.
Key Quotes
Trump on 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.”
Gov. Hochul, in 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.” (Quoted in the state’s press release referenced by the source.)
Market Reaction
The source does not provide specific market prices, stock moves, or timestamps. No company tickers were cited in the article.
What’s Next
The moratorium will last up to one year while state agencies review power, water and local impacts tied to large-scale data center construction. CNBC reported it is the first moratorium of its kind in the U.S.; the administration in Albany has not yet publicly revised the policy.
CNBC reached out to Gov. Hochul’s office for comment; no response was reported in the source.
Bottom Line for Traders
The story highlights how state-level regulation of data centers could become a political and investment focal point as AI-related infrastructure grows. Traders and investors should note the intersection of policy, utilities, and technology infrastructure—but the source provides no direct market data or investment guidance.
