President Trump asks New York state to reverse moratorium on AI data centers

AI For Business


President Donald Trump on Wednesday slammed New York state’s new moratorium on AI data center development, arguing that the state is trying to take away one of the biggest economic opportunities from the AI ​​boom.

President Trump wrote in Truth Social that “data centers will be one of the biggest drivers of future job creation,” calling the facilities “money machines” and “dollar chests” that will generate jobs and tax revenue. He urged New York state to change course “immediately,” arguing that companies would instead build projects in states like Texas, Arizona, Alabama and Florida.

The president’s post came a day after New York Gov. Cathy Hochul announced a one-year moratorium on new hyperscale data center permits while state regulators develop standards for energy- and water-intensive facilities.

The move makes New York the first state to impose a statewide moratorium on large AI data centers.

Business Insider previously reported that the decision upset developers, who warned that the move could push billions of dollars of investment elsewhere.

Hochul said the moratorium is intended to give the state time to address concerns about power grid reliability, water use and other environmental impacts while building a long-term framework for AI infrastructure.

Trump’s comments come as data centers become increasingly controversial across the country.

Business Insider reported on the local opposition that derailed the New Hampshire project and the high-profile debate over whether communities should adopt AI infrastructure despite concerns about power demand, water use, and tax incentives.