U.S. President Donald Trump has criticised New York’s decision to impose a one-year moratorium on the construction of large new data centres, warning that the move could drive investment, jobs and tax revenue to rival states while weakening America’s position in the global artificial intelligence race.
Posting on Truth Social on Wednesday, Trump described data centres as “Money Machines” and “LIQUID GOLD” for states that host them. He argued that companies planning new facilities would instead choose states such as Arizona, Florida, Texas and Alabama if New York proceeds with the restrictions.
Trump also warned that delaying data centre expansion could hand a strategic advantage in artificial intelligence to China and other countries, urging New York to reverse its decision.
New York Cites Energy and Environmental Concerns
New York became the first U.S. state on Tuesday to introduce a moratorium on large data centres. The one-year pause applies to facilities requiring 50 megawatts or more of electricity, effectively targeting the largest AI-focused computing centres.
Governor Kathy Hochul said the measure is intended to assess the impact of rapid data centre expansion on electricity grids, utility costs and natural resources. State officials argue that the growing demand for AI infrastructure could increase power bills for consumers and place additional strain on energy supplies.
AI Infrastructure Debate Intensifies
The move places New York at the centre of a wider national debate over balancing AI growth with energy and environmental concerns.
As technology companies race to build increasingly powerful AI infrastructure, lawmakers and regulators across dozens of U.S. states are considering measures to manage the impact of large data centres on electricity networks, local communities and water resources.
Trump’s criticism highlights the growing political divide over AI infrastructure, with supporters arguing that expanding data centres is essential to maintaining U.S. technological leadership, while critics warn that unchecked growth could overwhelm power systems and raise costs for residents.
(with inputs from Reuters)
