President Donald Trump criticized New York Gov. Kathy Hochul’s executive order pausing large-scale AI data-center construction, demanding the state “IMMEDIATELY” change the policy and that data centers shoulder utility costs.
New York and Washington, D.C. — President Donald Trump on Wednesday publicly condemned New York Gov. Kathy Hochul’s executive order imposing a temporary moratorium on construction of large-scale data centers, saying the state should reverse the policy and require operators to pay for their own water and power.
Hochul signed the order Tuesday to pause construction of data centers that consume 50 megawatts or more for up to a year. The pause—intended to allow state review of infrastructure impacts—targets large facilities tied to the artificial intelligence buildout.
Market Reaction
The source does not provide market-price changes or trading data tied to the moratorium.
Why It Matters
- Data centers are a major component of the AI infrastructure boom. The moratorium touches projects that use significant power and, according to state officials, could strain local utilities and freshwater supplies.
- The dispute highlights growing political tensions over how communities and states should balance AI-related investment with utility affordability and natural-resource concerns.
What Trump Said
In a Truth Social post, Trump said New York has “made a terrible decision,” called data centers “one of the biggest Driving Forces in the Future for Jobs,” and urged that the state change the moratorium “IMMEDIATELY.”
He also wrote that data centers “must pay” for their own water and power, with any surplus returned to state and local communities.
What Hochul Said
In a press release announcing the moratorium, Gov. Hochul framed the pause as necessary because “data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers.”
Responding to Trump on X, Hochul said: “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.”
Context & Background
Public concern has increased nationally about data centers’ fresh water use and electricity consumption as AI demand grows and utilities see rising prices. The moratorium is the first state-level pause of this kind reported in the source.
Policymakers and local communities are debating how to ensure data-center buildouts do not exacerbate utility-cost pressures or resource shortages.
Key Quotes
Trump (Truth Social): “New York State has made a terrible decision.”
Hochul (press release / X): “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.” / “We hit pause because the communities powering AI should share in its success.”
What’s Next
The executive order pauses large-scale builds for up to one year to allow state review. The source does not specify subsequent regulatory steps, timelines beyond the one-year pause, or outcomes of that review.
Bottom Line for Traders
The story signals heightened regulatory scrutiny of AI-related infrastructure at the state level and rising political attention to utility and resource impacts. Traders and investors tracking companies supplying or building large data centers should note increased policy risk in states that consider similar pauses, while the source provides no direct market or price data.
