Trump vs. Hochul over data centers: 'They are a real money-making machine'

Former President Donald Trump has sharply criticized New York Governor Kathy Hochul's decision to impose a one-year moratorium on new hyperscale data centers, calling it a "terrible decision" that will cost the state jobs and investment.

Trump asserted on social media that data centers are a "money-making machine" and a crucial engine for future employment. He accused Hochul of making the move for political reasons, predicting that projects will relocate to states like Alabama, Florida, Texas, and Arizona. "All the revenue and other benefits will go to Republican states, and some Democratic ones, where data centers are sought after as a lucrative revenue source," Trump stated.

He emphasized that data centers represent a "gold mine" through taxes and job creation, noting that companies bear the responsibility for their own water and electricity costs. Trump warned that New York should not allow "radical left Democrats" to cause the state to lose out on data centers, artificial intelligence, and other technologies that could end up in the hands of China and other nations.

The dispute arose after Governor Hochul signed an executive order suspending certain state permits for new large-scale data centers using 50 megawatts or more of power. This marks the first statewide moratorium of its kind in the U.S. Hochul stated that the decision followed discussions with state, business, and local leaders to set more rigorous standards for data center development. The one-year suspension of environmental permits is intended to allow for the creation of a regulatory framework to protect consumers, the environment, the power grid, and communities.