Trump blasts New York’s halt on large data center construction

Donald Trump attacked New York’s one-year halt on large data center construction, saying the state was making a mistake that would send jobs, tax revenue and investment to other places. He called data centers “Money Machines” and “LIQUID GOLD,” and said states such as Arizona, Florida, Texas and Alabama would be eager to absorb the projects if New York turned them away.

The governor’s order restricts new hyperscale data centers that require 50 megawatts or more of power. The governor’s order comes as artificial intelligence drives a race for electricity, land and water, with Hochul’s office putting the state at nearly 12 gigawatts of data-center load requests in the New York Independent System Operator interconnection queue as of May 2026, including more than eight gigawatts added in 2025 alone.

Governor Kathy Hochul called the move a protection for consumers and infrastructure, not an attack on technology. The pause can last up to one year and is meant to give New York time to build a stronger regulatory structure, including a Data Center Community Investment Framework that Empire State Development must create and post within 60 days. Hochul will also pursue legislation to repeal sales-tax exemptions for massive data centers across the state.

The executive order says New York’s existing rules are not ready for the scale of water use, water treatment and grid impacts tied to large data centers, and warns that New Yorkers could end up paying for transmission and infrastructure upgrades needed to serve them. It also says large loads can create planning uncertainty for utilities, threaten clean-energy targets and shift costs onto ordinary customers.

In February 2026, Hochul launched Energize NY Development, and the Public Service Commission opened a proceeding to modernize how large energy users connect to the grid while making sure they pay their fair share or supply their own power. The New York State Senate had also passed a separate moratorium bill in 2026, and Sen. Kristen Gonzalez, who chairs the Senate Internet and Technology Committee, welcomed Hochul’s order.

Food & Water Watch spent months organizing support for restrictions, including letters signed by more than 150 groups and 500 small businesses.