Trump Criticizes New York One-Year Data Center Ban, Warns of Job and Investment Losses
U.S. President Donald Trump used his Truth Social account to condemn New York Governor Kathy Hochul’s recent policy restricting data‑center development. He asserted that data centers are a major driver of future employment and economic growth, describing them as "cash cows" that generate significant tax revenue and investment for host communities. Trump warned that New York’s decision would divert income, jobs and tax benefits to "Red States" and some "Blue" states such as Texas, Florida, Alabama and Arizona, which he said offer lower taxes and "record‑setting" job opportunities. He emphasized that data‑center operators fund their own water and power needs, with any surplus returning to the state and local community, and urged an immediate policy reversal to avoid losing AI‑related opportunities.
New York State imposed a one‑year moratorium on the construction of large data centers on Tuesday, becoming the first U.S. state to enact such a ban amid concerns over rising electricity costs, water‑supply strain and broader community impacts. The moratorium applies to facilities that would consume 50 megawatts (MW) or more of power. During this period, the Department of Environmental Conservation (DEC) will not issue any discretionary permits that have not already been deemed complete. Governor Hochul explained that the measure addresses threats of higher utility bills, natural‑resource depletion and uncertainty for New York residents. She also announced plans to repeal the sales‑tax exemptions currently granted to large data centers.
Trump countered that data centers generate jobs and local economic benefits while covering their own power and water infrastructure costs. He warned that the state risks losing opportunities tied to artificial‑intelligence and emerging technologies if it does not change course. The comments come as U.S. states compete to attract large‑scale data‑center investments, with companies weighing electricity availability, permitting processes, tax incentives and regulatory policies when selecting sites.