Trump urges New York to reverse data center moratorium

President Donald Trump criticized New York’s new restrictions on large data center construction on Wednesday, escalating a policy fight over artificial intelligence infrastructure, energy demand and consumer utility costs. The executive order signed by Gov. Kathy Hochul bars construction for up to one year on large-scale data centers that use 50 megawatts of power or more.

In a post on Truth Social, Trump said New York should change the moratorium “IMMEDIATELY” and called the state’s decision “terrible.” He said data centers are among the largest future drivers of employment and described them as “Money Machines” for states where they are built.

Trump accused Hochul of blocking data centers “for political reasons,” saying she had halted facilities under construction or planned in New York. The order, signed Tuesday, makes New York the first U.S. state to impose a ban of this kind, according to CNBC.

The dispute comes as the artificial intelligence buildout drives demand for computing capacity. Large AI data centers can require substantial electricity to run servers and cooling systems, while some facilities also use fresh water for temperature control. As more projects seek grid connections, public concern has grown over whether the costs of new generation, transmission and distribution capacity will fall on utilities, technology companies or households.

Hochul framed the moratorium as a consumer and resource protection measure. “As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it’s my responsibility to take action and lead,” she said in a press release announcing the order.

The state action targets the largest projects by setting a power threshold. A 50-megawatt facility can represent a significant new load for a local grid, particularly in areas where available capacity is limited or where transmission upgrades would be required before a project can operate. A temporary moratorium gives regulators and policymakers time to assess how new facilities should connect to the grid, what infrastructure they require and who pays for associated costs.

Trump’s post also addressed cost allocation, saying data centers “must pay” for their own water and power. He added that any surplus should return to state and local communities.

The politics around data centers have sharpened ahead of the midterm elections, with affordability a prominent issue and residents in some areas objecting to new facilities. CNBC reported that utility prices have continued rising while AI demand has fueled rapid infrastructure development.

CNBC said it contacted Hochul’s office for comment. No response was included in its report.

This story draws on original reporting from CNBC.