Donald Trump has strongly criticized New York Governor Kathy Hochul for signing an executive order that imposes a one-year statewide moratorium on new hyperscale datacenters, the large facilities that power artificial intelligence. The order, signed on July 14, 2026, makes New York the first U.S. state to enact such a pause.
Trump's Reaction
On his Truth Social platform, Trump wrote that New York had made a "terrible decision" and accused Hochul of implementing the ban for purely political reasons. He demanded that she scrap the policy "IMMEDIATELY." Trump emphasized the economic benefits of datacenters, calling them "big, strong, bold, and Money Machines for the State in which they are built."
The Moratorium Details
The executive order directs state regulators to develop standards addressing environmental impacts, including energy grid strain, land disruption, noise pollution, and water usage. Hochul stated at a press conference, "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 to reduce the risk to our energy grid, minimize land disruption, noise pollution and protect our national resources, especially our water supply."
The moratorium applies specifically to "hyperscale" datacenters, which consume vast amounts of energy and water. New York's move reflects growing national concerns about the environmental and economic effects of these facilities.
National Context
According to a Heatmap poll, nearly three-quarters of Americans oppose having a datacenter built near their homes. More than a dozen states have considered similar moratoriums due to fears over rising utility bills and environmental harm. In June 2026, Seattle approved a one-year ban on datacenter development, becoming the largest U.S. city to do so.
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 the "radical left democrats" would cause the U.S. to "lose Data Centers and AI" to China.
Upcoming Events
Later on Wednesday, Trump was scheduled to headline a defense summit at the U.S. Army War College, where he was expected to promote large investments in battlefield technology.
