U.S. President Donald Trump has strongly criticized New York Governor Kathy Hochul's executive order imposing a year-long statewide ban on new hyperscale data centers. In a post on Truth Social, Trump described data centers as "money machines" that generate taxes and jobs comparable to "liquid gold," emphasizing their importance for cloud computing and artificial intelligence.
New York's executive order suspends large projects for one year
Signed on July 14, 2026, the order makes New York the first U.S. state to impose a statewide moratorium on large data centers, specifically those requiring over 50 MW of power. The stated goal is to buy time to assess environmental and social impacts and rewrite guidelines. However, Trump warns that this decision could cause the U.S. to lose the global AI race to China and other countries.
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Trump defends data centers as economic engines
Despite growing local opposition to data center construction across the country, Trump argues they are "tremendous wins for the states and communities lucky enough to get them," creating jobs and funding their own water and power resources. He urged Governor Hochul to "change its policy immediately," warning that the ban could push projects to states like Alabama, Florida, Texas, and Arizona.
According to Trump, data centers are vital not only for the digital economy but also for national security. His criticism joins a broader debate over digital infrastructure regulation, similar to concerns raised in Australia, where the government ordered the disposal of thousands of routers due to security risks, as covered in a previous article. (For more details: Australia Orders Disposal of 4,000 Routers).
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New York's decision raises questions about balancing technological growth with environmental sustainability. While some environmentalists applaud the pause, industry supporters fear that regulatory delays could stifle innovation. According to industry experts, hyperscale data centers consume vast amounts of energy and water, but companies are investing in renewable sources to mitigate their impact.
For broader context, the Wikipedia article on data centers provides technical details and environmental challenges associated with these facilities.
