New York suspends new AI data center due to power and water issues
The suspension of construction on a new AI data center in New York has brought it to the forefront of a national debate over how data center infrastructure should be managed.
WASHINGTON — President Donald Trump defended data centers and criticized New York Gov. Kathy Hochul’s blockade on them as a new moratorium as the sprawling information technology facilities that power artificial intelligence face resistance in communities across the country.
President Trump touted data centers as “one of the biggest job drivers of the future” in a July 15 post on Truth Social. “They’re big, strong, bold, and they’re money machines for the states they’re built in.”
The president singled out New York state, saying it was a “terrible decision” for Hochul, a Democrat, to sign an executive order on July 14 that halted data center construction for a year while the state developed new standards for the facilities. New York has become the first state to halt construction of new data centers.
President Trump accused Hochul of issuing the moratorium for “political reasons” and called on New York to “immediately change its policies.”
Data centers, which house the computer networks and servers that enable digital information and services, are becoming increasingly important to high-tech companies as technology expands, particularly in artificial intelligence.
However, residents of many communities are protesting the construction of the center. Centers occupy large amounts of space, are generally aesthetically unappealing, require significant electricity, water, and other utilities, generate noise, and provide little direct benefit to nearby residents.
Critics also argue that data centers disproportionately target low-income areas.
President Trump said companies that operate data centers are being sought after by “red states” such as Alabama, Florida and Texas.
“Taxes and jobs equal liquid gold!” he wrote in a social media post. “All of this revenue and other benefits will go to red states and some blue states, where data centers are sought after as cash cows with low taxes and record employment.”
But recent battles over data centers are occurring in both Democratic and Republican-leaning states, from Nashville to the Virginia suburbs of Washington, D.C., to rural Utah and small towns in New Jersey. Even Palm Beach, Florida, home of President Trump’s Mar-a-Lago resort, is hotly debated over a new AI data center planned there.
President Trump expressed concern that as the United States competes for global leadership in AI innovation, other countries are creating barriers that slow progress in AI technology.
In June, President Trump signed an executive order requiring AI developers to voluntarily submit their models to the federal government for review for potential security risks. The order stopped short of requiring the government to conduct safety assessments and cybersecurity testing of advanced AI products.
X Contact Joey Garrison at @joeygarrison.
