Trump blasts New York AI data center ban, says state should change policy 'immediately'

• The moratorium blocks construction of data centers consuming 50 or more megawatts of power for up to one year, making New York the first state to implement such a ban
• Public backlash has grown over data center fresh water and power consumption as utility prices rise amid the artificial intelligence buildout boom
• Trump stated data centers are 'Money Machines' for states and urged they must pay for their own water and power, with excess returning to communities

Summary

President Donald Trump strongly criticized New York Governor Kathy Hochul's executive order imposing a moratorium on large-scale data center construction, calling on the state to reverse the policy "immediately."

Key Policy Details:

• New York became the first U.S. state to ban construction of data centers using 50+ megawatts of power for up to one year
• The executive order was signed by Governor Hochul on Tuesday
• The moratorium addresses concerns about utility costs, natural resource depletion, and uncertainty for residents

Trump's Position:

Trump characterized data centers as "Money Machines" and a major job creator, arguing the state made a "terrible decision" for political reasons. He emphasized that data centers should pay for their own water and power consumption, with excess resources returned to state and local communities.

Market Context:

The controversy reflects growing national backlash against data center development, driven by:

• Rising utility prices amid AI infrastructure buildout
• Increased fresh water and power consumption concerns
• Public anger over potential cost impacts on residents
• Affordability issues becoming political flashpoints

Broader Implications:

This policy clash highlights tension between AI industry expansion and local infrastructure concerns. New York's first-in-nation ban could influence other states grappling with similar issues as AI demand fuels rapid data center growth. The dispute also signals potential regulatory headwinds for tech companies planning large-scale infrastructure investments, particularly in states facing utility capacity constraints and public opposition.

Governor Hochul's office has been contacted for comment but has not yet responded.