Trump rips New York, Hochul over data center freeze

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President Trump bashed New York Governor Kathy Hochul (D) over the state’s first-ever statewide freeze on new “hyperscale data centers,” calling it a “terrible decision.”

Trump, in a lengthy post on Truth Social Wednesday, alleged Hochul decided to enact the first-in-the-nation freeze for “political reasons.”

“Data Centers are tremendous WINS for the States and Communities that are lucky enough to get them. New York should change its Policy, IMMEDIATELY,” Trump wrote.

“The Radical Left Dumocrats must not be allowed to cause us to lose Data Centers, AI, and all of this incredible new Technology, to China, and other countries!” he added.

As part of the law, Hochul will pause state environmental permits for “up to” a year to give the state time to put together a framework to protect the environment, energy grid and help New Yorkers’ electrical bills.

The pause will apply to data centers that can use 50 megawatts or more of power, Hochul’s aides told reporters.

The Trump administration has pushed for more innovation in the U.S., including the development of data centers that power the development and maintenance of AI systems.

“One of the biggest Driving Forces in the Future for Jobs, are Data Centers,” Trump wrote on X. “They are big, strong, bold, and Money Machines for the State in which they are built.”

Pointing to data center development in other states, Trump suggested the tax revenue and jobs are “liquid gold,” arguing New York’s decision will prompt companies to head to Republican-led states and “some Blue.”

The president emphasized the data centers must pay for their own water and power consumption, a stance that is increasingly being embraced by both sides of the aisle amid voters’ concerns about the infrastructure.

Hochul’s freeze comes after the New York state legislature passed its own one-year moratorium last month. The bill would stop data center permits for “hyperscale” facilities, which it defines as those with a peak load of more than 20 megawatts.

It is not clear whether the governor plans to sign or veto that bill.

Democrats largely agree data centers are a problem, though there are divisions within the party about the solution. A contingency over antiestablishment Republicans also support these initiatives.

Reuters reported earlier this week the White House is planning to bring together utility companies and data center developers to make a pledge ensuring AI and its demand for electricity will not increase power bills for households and businesses.

Trump announced an agreement with Big Tech companies earlier this year to cover the cost of electricity they consume as AI development surges.

Google, Microsoft, Meta, Oracle, xAI, OpenAI, and Amazon have agreed to sign onto the “Ratepayer Protection Pledge,” which the White House defines as a pact to build, bring or buy new power to support data centers to prevent higher electricity costs.

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