President Donald Trump criticized New York Governor Kathy Hochul on Wednesday, calling for the state to change its new data center moratorium "IMMEDIATELY" after New York became the first US state to impose such a ban. Trump stated in a Truth Social post that data centers are "Money Machines for the State" and accused Hochul of terminating data center construction "for political reasons." The executive order, signed by the governor on Tuesday, bars the construction of large-scale data centers that use 50 or more megawatts of power for up to a year, as national concerns grow over data center water and power consumption amid rising utility prices.
New York Executive Order Bars Large-Scale Data Centers for One Year
The new state executive order, signed by the governor on Tuesday, bars the construction of large-scale data centers that use 50 or more megawatts of power for up to a year. "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," Hochul said in a press release announcing the moratorium.
Trump wrote on Wednesday that "New York State has made a terrible decision." In his Truth Social post, he stated: "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. Governor Kathy Hochul, for political reasons, has terminated all Data Centers being built, or to be built, in New York State."
National Backlash Grows Over Data Center Power Consumption and Utility Prices
A national backlash has grown around data center fresh water and power consumption, as utility prices continue rising while artificial intelligence demand booms, fueling a breakneck infrastructure buildout. Concerns over how data centers could shoulder their own power costs have been making the rounds ahead of the midterm elections, as Democrats take aim at affordability issues and residents' anger lingers against the new builds.
Trump Urges Data Centers Pay Own Power Costs
Trump's post urged that data centers "must pay" for their own water and power, with any leftover going back to state and local communities. CNBC has reached out to Hochul's office for comment.
FAQ
What did President Trump say about New York's data center ban on Wednesday?
President Donald Trump criticized Governor Kathy Hochul on Wednesday via Truth Social, calling for New York to change its new data center moratorium "IMMEDIATELY." He stated that data centers are "Money Machines for the State" and accused Hochul of terminating data center construction "for political reasons."
What does New York's new executive order on data centers require?
The executive order, signed by Governor Hochul on Tuesday, bars the construction of large-scale data centers that use 50 or more megawatts of power for up to a year. New York became the first US state to impose such a ban.
Why did Governor Hochul implement the data center moratorium?
Hochul stated in a press release that "data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers," adding that it was her "responsibility to take action and lead." The decision comes as national concerns grow over data center power consumption and rising utility prices.
