Trump urges New York to lift AI data centre pause immediately

US President Donald Trump criticised New York's decision to pause approvals for new AI data centres, calling the facilities "money machines" and warning the state risks losing billions of dollars in investment and jobs.

Trump made the remarks on Wednesday in a post on Truth Social, a day after New York Governor Kathy Hochul announced a one-year moratorium on new hyperscale AI data centre permits while regulators develop new standards for the facilities.

"One of the biggest Driving Forces in the Future for Jobs, are Data Centers," Trump wrote.

He described the facilities as "Money Machines" and "Cash Cows" that generate employment opportunities and tax revenue, urging New York to reverse the decision "IMMEDIATELY."

Trump warns investment could shift to other states

Trump argued that companies would simply move their projects to states with fewer restrictions, naming Texas, Arizona, Alabama and Florida as likely alternatives.

His comments come as businesses and developers have expressed concerns that New York's temporary halt could push AI infrastructure investment elsewhere.

According to Business Insider, the decision has unsettled developers who fear billions of dollars in potential investment could leave the state.

New York cites environmental concerns

Governor Hochul said the one-year pause is intended to give regulators time to establish a long-term framework for hyperscale AI data centres, which require significant amounts of electricity and water.

State officials have said the review will focus on issues including grid reliability, water consumption and the environmental impact of the rapidly expanding AI infrastructure sector.

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

Debate over AI infrastructure intensifies

Data centres have become a growing source of debate across the United States as demand for AI computing continues to surge.

While supporters argue the facilities create jobs and attract investment, opponents have raised concerns about their impact on local communities, electricity demand, water resources and tax incentives.

The dispute reflects the broader challenge facing governments as they balance economic opportunities created by the AI boom with environmental and infrastructure concerns.