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Trump Criticizes New York Data Center Moratorium, Backs AI Expansion

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US President Donald Trump on Wednesday urged New York to reverse its data center policy, saying the state risks losing jobs, investment and artificial intelligence development to other countries.

Trump said in a Truth Social post that data centers are "One of the biggest driving forces in the future for jobs" and called them "money machines" that generate jobs and tax revenue for states.

Trump accused New York Governor Kathy Hochul of halting data center projects for political reasons, saying companies are instead pursuing investments in Alabama, Florida, Texas, Arizona and other states. "Both the taxes and the jobs amount to liquid gold!" he said.

He argued that data centers should benefit local communities because operators fund their own water and power needs, while any remaining benefits flow back to state and local governments.

"All of this Income, and other benefits, will be going to Red States, and some Blue, where data centers are sought as cash cows, with lower taxes and record setting jobs," Trump added.

Trump urged New York to reverse course, arguing the policy would shift investment, tax revenue and jobs elsewhere. "New York should change its policy, immediately," he said.

He also warned the US could lose its technological edge if restrictions continue. Trump criticized his political opponents, saying they "must not be allowed to cause us to lose data centers, AI, and all of this incredible new technology, to China, and other countries!"

Trump's comments follow New York Governor Kathy Hochul's Tuesday executive order pausing new environmental permits for hyperscale data centers for up to one year while regulators develop statewide standards for power, water use and environmental protections.

The order also requires state agencies to review grid infrastructure and community investment requirements before new projects can proceed under statewide standards and local permitting rules.

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