Former US President Donald Trump publicly criticized New York Governor Kathy Hochul's decision to pause approvals for new large-scale data centers, labeling the policy as "a terrible decision" and urging the state to immediately rescind the related ban. The dispute between the two sides over AI infrastructure development and energy costs has escalated further.

Trump posted on social media, stating that data centers not only generate tax revenue but also create a significant number of job opportunities, making them key investment projects that states compete to attract. Trump said, "Taxes and jobs are like 'liquid gold.' For the states and communities fortunate enough to attract data centers, this would be a huge win."

Governor Hochul signed an executive order on Tuesday, announcing that New York State will suspend environmental permit approvals for new large-scale data centers for up to one year. During the moratorium, the state government will develop a new regulatory framework to address concerns that the rapid expansion of data centers could drive up residential electricity prices and increase water usage pressures.

In response, Hochul later stated on social media that communities bearing the infrastructure costs for AI development should also share in the benefits of the AI industry's growth. She said, "If data centers are truly 'liquid gold,' then New Yorkers deserve more than just a few crumbs."

According to data released by the Pew Research Center in April this year, New York State currently has 148 operational data centers, ranking fifth in the nation. The United States as a whole has over 3,000 data centers in operation, with approximately 1,500 more under construction.

However, with the rapid growth in AI computing power demand, the massive electricity consumption of data centers continues to drive up energy costs, raising concerns among an increasing number of residents and local governments. Data shows that the wholesale electricity price in the Buffalo region of New York for 2025 has risen by 197% compared to five years ago.

Hochul previously stated in an interview that the moratorium is not an opposition to the AI industry but aims to address community concerns about rising energy costs and establish a clearer, more reasonable regulatory system for data centers. She said, "I understand the importance of AI; we are in the midst of a technological revolution. This change is sweeping in like a hurricane—it will bring disruption, but ultimately, it will also have positive impacts."

New York's decision has also drawn criticism from business figures. Dan Loeb, founder of the US hedge fund Third Point, posted on social media, calling this policy the "dumbest decision" New York has made in recent years, even comparing it to Amazon's decision in 2019 to abandon plans for a second headquarters in Queens, New York. Loeb believes this policy will cause New York to lose billions of dollars in investment and shift thousands of jobs to other US states.

Reports indicate that Governor Hochul has been working in recent years to improve New York's business environment to attract more large corporate investments. However, as the November gubernatorial election approaches, she also faces ongoing pressure from voters regarding data centers driving up energy costs and affecting community quality of life.

In 2019, Amazon originally planned to build a second headquarters in Long Island City, Queens, but ultimately canceled the investment plan due to strong opposition from local residents and political figures. At the time, opponents, including Representative Alexandria Ocasio-Cortez, criticized New York State for offering Amazon approximately $3 billion in tax incentives and expressed concerns that the project would further strain local public resources such as transportation.