New York Governor Kathy Hochul signed an executive order on Tuesday establishing a one-year statewide moratorium on new hyperscale datacenters, making New York the first US state to enact such a pause. The order targets large-scale facilities that power artificial intelligence and are known for high resource consumption.
Trump Reacts Strongly to the Policy
President Donald Trump quickly condemned the move on his Truth Social platform, calling it "a terrible decision." He accused Hochul of implementing the ban for purely political reasons and demanded she scrap the policy "IMMEDIATELY." Trump emphasized the economic benefits of datacenters, describing them as "big, strong, bold, and Money Machines for the State in which they are built."
Details of the Executive Order
The moratorium directs state regulators to develop new regulatory standards addressing environmental impacts such as energy grid strain, land disruption, noise pollution, and water supply protection. "This pause will remain in place for up to one year while New York establishes the strongest possible framework to protect our community's guardrails," Hochul stated at a press conference.
Growing National Trend
New York's action reflects a broader national trend, with over a dozen states considering similar moratoria due to resident concerns about higher utility bills and environmental harm. A recent Heatmap poll found that almost three-quarters of Americans oppose a datacenter being built near their homes. Seattle approved a one-year ban on datacenter development in June, becoming the largest city to do so.
Trump's Broader AI and Energy Stance
Trump, who has pursued a deregulatory AI agenda in his second term, argued that datacenters should pay for their own water and power rather than receive tax breaks. He warned that "radical left democrats" would cause the US to lose datacenter and AI investments to China. Later Wednesday, Trump was scheduled to headline a defense summit at the US Army War College, touting investments in battlefield technology.
