Trump Critics New York’s Data Centre Pause
Trump called New York’s decision to pause the construction of new data centers drawing 50 megawatts or more a "terrible decision", urging the state to reverse it immediately. He compared data centers to "liquid gold," arguing they generate significant investment, tax revenue, and jobs for states that host them—benefits he claimed New York would lose out on.
"One of the biggest Driving Forces in the Future for Jobs, are Data Centers… [they are] Money Machines"
Governor Kathy Hochul countered that New Yorkers deserve a fair share of data center benefits, noting the significant costs these facilities impose on hosting communities while reaping most of their profits elsewhere. She justified the pause by citing higher electricity bills and utility expenses borne by local towns.
“If data centers are really ‘liquid gold’, then New Yorkers deserve more than scraps,” Hochul wrote, emphasizing that rural communities often bear the brunt of these facilities’ costs while urban areas reap most of the benefits.
The debate follows a Georgia Tech study indicating data center gains are unevenly distributed, with metropolitan counties capturing the majority while rural areas shoulder higher electricity bills.
While some, like Bill Ackman, focused on national security concerns, arguing China isn’t imposing similar moratoriums, others, like Alexandria Ocasio-Cortez, supported Hochul’s move, seeing it as an opportunity to develop strong AI regulations that benefit all Americans.
What’s striking is the broader context: Trump’s criticism appears aimed at other governors as much as Hochul, reflecting a federal push to preempt state AI regulation through DOJ litigation and national standard proposals. This campaign has faced significant resistance.