Key facts
- Donald Trump criticized New York's one-year moratorium on new large data centers.
- Trump stated the moratorium would cost jobs and tax revenue, driving them to other states.
- New York Governor Kathy Hochul signed an order pausing construction of 'hyperscale' data centers.
- Hochul cited the need for regulatory standards to address environmental impacts, energy grid strain, and resource depletion.
- Republican governors and investor-owned utilities have joined a pledge initiated by Trump concerning data center energy use.
U.S. President Donald Trump criticized New York state's decision to halt construction of large new data centers, stating the one-year moratorium would drive jobs and tax revenue to other states. Trump wrote on Truth Social that New York's decision was "terrible" and that companies seeking to build data centers would be courted by states including Arizona, Florida, Texas, and Alabama.
Trump also warned that the moratorium risked ceding ground on artificial intelligence to China and other countries, urging New York to change course. New York became the first U.S. state to impose such a moratorium, which applies to data centers that use 50 megawatts or more of power to operate. Governor Kathy Hochul said the facilities threaten to raise utility bills and deplete natural resources.
The moratorium positions New York at the forefront of a growing national debate over how to manage the infrastructure needed to support AI. While technology companies are racing to build new data centers, lawmakers and regulators in dozens of states are weighing measures to limit their effect on electricity grids, utility bills, and local communities.
Separately, Republican governors and investor-owned utilities have joined a pledge initiated by Donald Trump regarding data center energy consumption. Some Democratic governors, while not directly contacted, support the pledge's goals of managing energy costs and consumption. Major tech companies such as Amazon, Google, Meta, and Microsoft previously pledged to cover the full cost of electric infrastructure for their data centers and collaborate with grid operators to enhance reliability.