Donald Trump has criticized New York Governor Kathy Hochul's proposed moratorium on new data center construction, arguing it could harm U.S. competitiveness in the global AI race. Hochul framed the order as a measure to responsibly manage energy consumption.
The debate over data center development in New York highlights a growing tension between the rapid expansion of AI infrastructure and concerns over energy consumption, resource depletion, and economic impact, potentially setting a precedent for other states.
Donald Trump has criticized New York Governor Kathy Hochul's proposed moratorium on new data center construction, arguing it could harm U.S. competitiveness in the global race for artificial intelligence. Hochul, seeking a second full term, framed her order as a measure to responsibly manage energy consumption while maintaining a business-friendly environment, stating, “I want long-term job growth and I have to make sure I have the power in place to do this.”
While New York has fewer data centers than many other states, Hochul's action is viewed as a potential model for other states. Senator Bernie Sanders commended the move, seeing it as a way to "understand the extraordinary impact" of AI. However, business groups, particularly in the construction sector, have voiced opposition due to concerns about job losses. Pennsylvania Senator John Fetterman expressed his disapproval on X, stating that a moratorium "is China First," highlighting worries about the U.S. falling behind in AI development. Hochul's proposed moratorium follows a decision by the Democratic-controlled Legislature to approve a broader 12-month moratorium on data center construction. The governor has not yet signed the bill and intends to discuss it further with lawmakers. Additionally, Hochul plans to eliminate sales tax subsidies for data centers, which would require legislative approval.
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