Trump calls data centers 'money machines' and says New York is letting them slip away

• Gov. Kathy Hochul's AI data center moratorium aims to address environmental concerns in New York.
• Trump slammed New York's pause, warning of lost economic opportunities and jobs.
• Intensifying debates over data centers hinge on concerns about environmental and community impacts.

President Donald Trump on Wednesday blasted New York's new pause on AI data center development, arguing the state is turning away one of the biggest economic opportunities of the AI boom.

"One of the biggest Driving Forces in the Future for Jobs, are Data Centers," Trump wrote on Truth Social, calling the facilities "Money Machines" and "Cash Cows" that generate jobs and tax revenue. He urged New York to reverse course "IMMEDIATELY," arguing companies would instead build projects in states such as Texas, Arizona, Alabama, and Florida.

The President's post comes a day after New York Gov. Kathy Hochul announced a one-year pause on new hyperscale data center permits while state regulators develop standards for the energy- and water-intensive facilities.

The move makes New York the first state to impose a statewide moratorium on large AI data centers.

Business Insider previously reported the decision rattled developers, who warned it could push billions of dollars in investment elsewhere.

Hochul has said the pause is intended to give the state time to address concerns over grid reliability, water use, and other environmental impacts while crafting a long-term framework for AI infrastructure.

Trump's comments also land as data centers have become an increasingly contentious flash point across the country.

Business Insider has reported on local opposition that derailed projects in New Hampshire and on high-profile debates over whether communities should embrace AI infrastructure despite concerns about electricity demand, water use, and tax incentives.