Former President Donald Trump has sharply criticized New York Governor Kathy Hochul's decision to pause new data center permits, labeling it a "terrible decision" and accusing state Democrats of pursuing a political agenda that costs the state significant economic benefits.
"New York State has made a terrible decision," Trump stated on social media. He argued that the ban will divert potential income and benefits to other states, both Republican and Democratic, which are actively seeking data centers. Trump emphasized that these facilities represent "cash cows" for communities, providing jobs and tax revenue. "They must pay for their own Water and Power, and any leftover goes back to the State and local Community," he added. "New York should change its Policy, IMMEDIATELY."
Trump expressed concern that such policies could lead to the loss of data centers, artificial intelligence development, and other advanced technologies to countries like China.
Governor Hochul announced the executive order pausing new permits for data centers on July 14, 2026, citing concerns that the facilities place a strain on the state's energy grid. "I don't want New York to just be first. I want New York to be first in the right way," she said at the signing ceremony.
The move also drew criticism from New York City's Republican minority council leader, David Carr. "President Trump is absolutely right," Carr stated. He argued that the decision, coupled with actions against nuclear power plants and natural gas, and reliance on expensive Canadian hydroelectric power, represents a flawed energy and economic strategy. Carr described the moratorium on data centers, which he noted can bring billions in investment and thousands of jobs, as a "tremendous missed opportunity."