Trump blasts Hochul, New York over data center freeze

President Donald Trump has criticized New York Governor Kathy Hochul for implementing a statewide freeze on new data center construction, labeling it a "terrible decision." Trump asserts that New York is losing potential "liquid gold" in taxes and jobs to other states like Alabama, Florida, Texas, and Arizona, which he says are actively seeking data centers as "cash cows" with lower taxes. He urged New York to reverse its policy immediately, warning against losing technology and AI development to other countries.

Hochul's administration announced a pause on state environmental permits for data centers consuming 50 megawatts or more for up to a year. This interim period is intended to allow New York to establish a comprehensive framework to safeguard the environment, manage the energy grid, and mitigate impacts on residents' electrical bills. This executive action follows the New York state legislature's recent passage of its own one-year moratorium bill on "hyperscale" facilities, defined as those with peak loads exceeding 20 megawatts; it remains unclear if Hochul will sign or veto this legislative measure. While Democrats generally acknowledge issues with data centers, they are divided on specific solutions, a sentiment shared by some anti-establishment Republicans.