Trump criticizes New York for pausing AI data center approvals: This is a "terrible decision," and tax revenue and jobs are "liquid gold."
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Trump criticized New York Governor Kathy Hochul’s executive order suspending environmental permits for large data centers on social media Wednesday, calling it a “terrible decision” and demanding the state immediately change its stance. He wrote that the tax revenue and jobs brought by data centers are “liquid gold,” a “huge victory” that states and communities can seldom encounter.
Hochul promptly responded on social media, stating: “Communities powering AI deserve to share its benefits,” and rhetorically asked: “If data centers are really ‘liquid gold,’ should New Yorkers get nothing but scraps?”
Billionaire hedge fund manager Dan Loeb also fiercely criticized the decision on social media, calling it “the dumbest decision since the collapse of the Amazon HQ2 project,” warning that it will drive away billions of dollars in investment and cause tens of thousands of jobs to flow to Republican-led states.
On Tuesday, Hochul signed an executive order announcing the suspension of environmental permit issuance for newly built large data centers for up to one year, allowing New York to develop a regulatory framework to prevent data centers from pushing up electricity costs and impacting water supply.
Energy Cost Pressure: The Direct Cause of New York’s Approval Suspension
Behind Hochul’s executive order is the sharp surge in energy costs sparked by data center expansion.
According to compiled Bloomberg data, wholesale electricity prices in the Buffalo area of New York State will rise 197% in 2025 compared to five years ago. This trend is not unique to New York—many regions across the U.S. have set records for power costs due to massive construction of energy-intensive data centers, causing consumers to complain bitterly.
Hochul said in an interview with Bloomberg’s Odd Lots podcast that she hopes to use this pause period to respond to public dissatisfaction over energy costs and to provide businesses with clear regulatory rules.
She emphasized: “I understand the importance of AI. We are in the midst of a revolution, a wave of change sweeping in like a hurricane—it will bring disruption, but ultimately create huge value.”
New York’s AI Infrastructure Map: 148 Data Centers
According to a Pew Research Center report released in April this year, New York currently operates 148 data centers, ranking fifth among U.S. states. The nation has over 3,000 operating data centers, with about 1,500 under construction.
For businesses, New York remains an important destination; but this suspension undoubtedly adds short-term uncertainty to new project approvals.
Hochul faces a dilemma: on one hand, needing to prove New York’s appeal to large enterprises, while on the other facing pressure from next November’s gubernatorial election and genuine voter concerns about the impact of data centers on communities.
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