Trump Calls NY Moratorium on AI Data Centers ‘Terrible Decision’

President Donald Trump criticized New York Governor Kathy Hochul for announcing a temporary ban on data centers, calling it a “terrible decision” and urging the state to change its decision immediately.

(Bloomberg) — President Donald Trump criticized New York Governor Kathy Hochul for announcing a temporary ban on data centers, calling it a “terrible decision” and urging the state to change its decision immediately. “Both the Taxes and the Jobs amount to LIQUID GOLD!” he wrote in a post on Truth Social.

“Data Centers are tremendous WINS for the States and Communities that are lucky enough to get them.” The governor’s executive order announced Tuesday pauses environmental permits on new large data centers for up to one year while the state develops a framework for regulating facilities to prevent them from hiking utility bills and affecting water supply. Hochul wants to use the moratorium to address frustration among communities over energy costs and provide clear regulation for companies, she said in an interview for Bloomberg’s Odd Lots podcast.

“I understand how important AI is,” she said. “We are in a revolution. The winds of change are coming in at hurricane force, and it’s disruptive, but it’ll also be very positive.”

Hedge fund billionaire Dan Loeb also blasted Hochul’s order in a post on social media, calling it the “stupidest move” since local opposition contributed to Amazon.com Inc. scrapping plans to build a second headquarters in the state. Hochul has been fielding concerns by the business community, including financial firm owners like Third Point LLC’s Loeb, that New York is growing increasingly unfriendly to large corporations.

While she seeks to attract more business to New York, she faces reelection in November and constituents who are concerned about the impact of data centers on their communities. In 2019, Amazon dropped its expansion plans in the Long Island City neighborhood of Queens after it met heavy resistance from local officials and residents, including from Representative Alexandria Ocasio-Cortez, who criticized a promised $3 billion in tax incentives and raised concerns about the impact on the already strained public transportation system. The ban is the “stupidest move since @AOC single-handedly shut down the proposed Amazon fulfillment center in Queens,” Loeb said in a post on X. “Way to turn away billions in investment and sending 1000s more jobs to red states.”