Trump blasts New York's data center moratorium as jobs threat

Executive Order No. 62 applies to projects using 50 megawatts or more and makes New York the first state in the country to impose a statewide permitting moratorium of its kind. Donald Trump attacked New York’s one-year moratorium on large new data centers, casting it as a threat to jobs, tax revenue and U.S. competitiveness while Kathy Hochul’s administration moves to slow a surge in power-hungry AI infrastructure.

In a Truth Social post, Trump said New York’s decision would send investment to Arizona, Florida, Texas and Alabama, where he said companies interested in building would be courted. He called data centers “money machines” and “liquid gold” for the states that build them, and warned that New York could lose ground to China and other countries if it limits development as the artificial-intelligence boom speeds up.

Hochul signed the order Tuesday after New York faced unprecedented demand for data center development from AI, cloud computing, streaming and other uses. The order cites nearly 12 gigawatts of data center load requests in the New York Independent System Operator interconnection queue as of May 2026, with more than 8 gigawatts added in 2025 alone. The temporary pause, which can last up to one year, will give Albany time to develop higher standards and a New York State Data Center Community Investment Framework.

The move is a ratepayer and infrastructure fight, not a ban on technology investment. New Yorkers should not be left paying for transmission and infrastructure buildouts for large electric loads, and data centers and other large customers should pay their fair share or supply their own power. The order also flags concerns about energy use, water use, water quality, air quality, noise, lighting and quality of life, and says the growth of statewide electric load from data centers could complicate New York’s clean-energy targets, including its statutory goal of getting 50% of electricity from renewable energy.

Hochul said, “When you do well and you benefit from the talent, the land and the energy of New York, we expect you to do good for our communities.” Already-permitted projects can continue, and facilities tied to health care or educational uses generally fall outside the 50-megawatt threshold. The state also plans to pursue legislation to repeal sales tax exemptions for massive data centers.