Former US President Donald Trump has strongly criticized New York Governor Kathy Hochul for implementing the nation's first moratorium on data center construction, labeling the policy as "terrible" and claiming it will severely damage the state's economy.

Trump wrote on his Truth Social platform: "Governor Kathy Hochul, for political reasons, has halted all ongoing and planned data center projects in New York. Now, states like Alabama, Florida, Texas, and Arizona are competing to attract these businesses. The tax revenue and jobs these projects bring are like a continuous cash cow!"

Trump further added that New York should "immediately reverse this policy."

Hochul responded to Trump on social media.

She wrote: "If data centers are truly 'liquid gold,' then New Yorkers shouldn't be left with just the crumbs. We pressed pause because the local communities that support the AI industry's growth deserve to share in the benefits. This way of thinking might be unheard of in Washington, but for us, it's simply the right thing to do."

The governor signed an executive order on Tuesday, suspending the approval process for large-scale data centers in New York for up to 12 months. During this period, the state government will develop environmental assessment and regulatory standards for such facilities.

The executive order stipulates that data center projects already in the approval pipeline can proceed, and low-energy consumption data centers for medical or educational purposes are also exempt from the moratorium.

The policy was prompted by long-standing protests from environmental groups against the proliferation of new data centers, which consume vast amounts of electricity and water. As major companies race to compete in the artificial intelligence sector, the boom in data center construction is intensifying in states like Virginia and Texas.