A one-year moratorium on hyperscaler data centers, ordered by New York Gov. Kathy Hochul, is the sharpest of three state-level actions now cutting against the AI infrastructure buildout. President Trump pushed back Sunday in a televised interview with Michael Cohen, his former fixer, recorded last week, saying communities that reject data centers are "making a mistake" because the facilities generate "tremendous amounts of jobs and money."
Governors versus the buildout
The resistance spans both red and blue states. Texas Gov. Greg Abbott said data center companies "dug their own grave" after failing to win community support and has directed state regulators to require companies to cover the full cost of the electrical infrastructure their projects demand. Pennsylvania Gov. Josh Shapiro imposed restrictions. Hochul's moratorium on hyperscaler projects covers one year.
| Governor | State | Action |
|---|---|---|
| Greg Abbott | Texas | Regulators directed to require full infrastructure cost recovery |
| Josh Shapiro (D) | Pennsylvania | Restrictions imposed |
| Kathy Hochul (D) | New York | One-year moratorium on hyperscaler data centers |
Power claims and federal policy
Trump told Cohen that data centers are "making their own power plants" and not drawing electricity from the grid. "They're building the most beautiful, you've never seen power plants like this," he said. Some operators are doing exactly that, developing behind-the-meter generation that feeds their facilities directly. Others draw from the grid.
The Environmental Protection Agency issued guidance last month saying power plants not connected to the public grid are not subject to the Clean Air Act's Acid Rain Program. The agency said the move would expand opportunities for dedicated data center power generation. The Trump administration has also moved to ease certain environmental requirements for data centers while pushing tech companies to cover more of the electricity costs associated with the AI buildout. Those obligations are formalized through what it calls the Ratepayer Protection Pledge.
Trump also said during the interview that the U.S. is leading China in AI "by a lot." No supporting data for that claim appeared in the interview.