Trump slams New York’s first-in-nation data center moratorium as Hochul vows to protect ratepayers

New York hits pause on hyperscale projects

New York became the first U.S. state to impose a statewide moratorium on new large data centers on Tuesday. Governor Kathy Hochul signed an executive order halting environmental permits for so-called hyperscale facilities, those consuming at least 50 megawatts of electricity, roughly the equivalent of 50,000 homes. The order, which remains in force for up to twelve months, directs the Department of Environmental Conservation to develop a comprehensive regulatory framework covering energy use, water consumption, noise pollution, and grid impacts. Projects already in the permitting pipeline and those serving health care or education are exempt.

The development of data centers threatens to increase electricity bills, exhaust our natural resources, and create uncertainty for New Yorkers: it is my responsibility to act.

Hochul also announced plans to end sales-tax exemptions currently enjoyed by large data centers and said future facilities would have to generate their own power or pay a higher price to use the state grid. The moratorium follows sustained pressure from environmental groups and growing resident anxiety over utility costs.

Trump erupts, calling the ban a gift to China

President Trump responded on Wednesday with a series of posts on his Truth Social platform, branding the moratorium a "terrible decision" and urging New York to reverse course "IMMEDIATELY." He described data centers as "Money Machines" and "LIQUID GOLD" for states that host them, warning that companies would now be courted by Arizona, Florida, Texas and Alabama.

Both the Taxes and the Jobs amount to LIQUID GOLD! All of this Income, and other Benefits, will be going to Red States, and some Blue, where Data Centers are sought as Cash Cows, with Lower Taxes and Record Setting Jobs.

Trump argued the move risked losing the AI race to China and accused Hochul of acting for purely political reasons. Hochul fired back on social media, writing that if data centers are truly liquid gold, "New Yorkers deserve more than scraps" and that pausing to ensure communities share in AI’s success is "doing our job."

National backlash gains momentum

The New York action crystallizes a mounting bipartisan unease across the country. A recent Reuters/Ipsos poll found only one in three Americans approves of the current pace of data center construction, while a separate Heatmap survey reported that nearly three-quarters oppose a data center being built near their home. More than a dozen states have studied measures to restrict the facilities’ impact on power grids and local environments.

Even in Republican-led states that Trump touted as alternatives, restraint is taking hold. Arizona has paused tax incentives for data center projects, and Texas Governor Greg Abbott is scrutinizing their effect on residential electricity costs. Lawmakers in dozens of states are weighing bills that would limit the strain on infrastructure while still courting the investment that data centers represent.

Local fight erupts near Mar-a-Lago

While Trump presses for fewer barriers, a project roughly 20 miles from his own Mar-a-Lago estate is generating fierce opposition. In Palm Beach County, Florida, residents packed an auditorium on Wednesday wearing bright green shirts reading "NO to Project Tango" as county commissioners held a key vote on the proposed 3.5‑million‑square‑foot data center. Organizer Corey Kanterman of Stop Project Tango told WPBF that the facility simply does not belong near an elementary school and rural homes reliant on private wells.

We are hopefully going to convince the county commissioners that this just doesn’t belong here.

Opponents cite 5,000 gallons of potable water per day that developer PBA Holdings says the project will require, as well as fears of aquifer contamination and strain on emergency services. A petition against the project has collected more than 8,400 signatures. A site-selection expert unaffiliated with the development noted that a nearby gas plant gives the site ample power access, warning against missing a multibillion‑dollar economic engine.

What comes next

During the pause, New York’s environmental department must deliver a full impact study and uniform standards before any new hyperscale permits are issued. The order allows the moratorium to be lifted earlier if the regulatory framework is completed. The clash between a Democratic governor and a Republican White House over AI infrastructure is set to intensify as other states watch New York’s experiment closely while navigating their own local revolts.