President Donald Trump has condemned New York's newly enacted freeze on large artificial intelligence datacenters, demanding Governor Kathy Hochul scrap the policy immediately and accusing her of acting for political gain.
New York became the first state to impose such a restriction when Hochul signed an executive order Tuesday pausing construction of so-called hyperscale datacenters for one year. The order directs state regulators to develop environmental safeguards addressing concerns about energy grid strain, land disruption, noise, and water supply protection.
Trump's response came swiftly on his Truth Social platform. He called the moratorium a blunder, arguing that datacenters represent major economic engines for states that welcome them. "One of the biggest Driving Forces in the Future for Jobs, are Data Centers. They are big, strong, bold, and Money Machines for the State in which they are built," he posted.
The president framed the facilities as sources of tax revenue and employment, suggesting that blue states' resistance would hand competitive advantage to Republican-led states. He warned that such restrictions could push investment and AI development overseas to China, claiming the "radical left democrats" would cause America to "lose Data Centers and AI."
Trump's focus on datacenter development fits his broader deregulatory approach to artificial intelligence policy during his second term. However, he qualified his support Wednesday, stating that datacenters should pay their own way rather than accepting tax breaks and subsidies that have traditionally lured such projects to specific states.
Hochul's rationale for the pause centers on environmental and infrastructure concerns. At a press conference, she explained that the moratorium would allow the state to "establish the strongest possible framework to protect our community's guardrails to reduce the risk to our energy grid, minimize land disruption, noise pollution and protect our national resources, especially our water supply."
The appetite for datacenter restrictions extends well beyond New York. Public polling shows growing opposition to such facilities, with nearly three-quarters of Americans opposing construction near their homes, according to recent survey data. More than a dozen states have considered similar moratoria as residents express alarm over rising utility costs and environmental consequences.
Seattle approved its own one-year datacenter ban in June, becoming the largest city to enact such a restriction. The pattern reflects a tension between pro-development economic policy and community concerns about the resource demands of AI infrastructure.
Author James Rodriguez: "Trump's demand that Hochul reverse course overnight shows how datacenter policy has become the latest flashpoint in the AI rollout, with business interests and local environmental fears increasingly at odds."
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