U.S. President Donald Trump strongly criticised New York state’s restriction on building large data centres and called for an immediate policy change.

On July 15, Business Insider and other foreign media reported that Trump wrote on social media platform Truth Social that New York Governor Kathy Hochul (캐시 호컬)’s new executive order would damage jobs and the state’s industrial base.

The issue centres on an executive order Hochul signed on July 14. The measure blocks new construction of large data centres that use 50 megawatts or more of power for up to 1 year. New York state was described as the first case in the United States to introduce this type of ban.

Trump described data centres as a key driver of future jobs. He criticised Hochul, saying they bring big revenue to states where they are built and that she halted all data centres being built or to be built in New York state for political reasons. He wrote that New York state had made a "terrible" decision and must change the policy "immediately".

The measure comes as investment in data centre infrastructure is rising rapidly with the spread of artificial intelligence. Opposition is also growing over concerns that data centres, which use large amounts of electricity and fresh water, could raise public utility bills and increase strain on resources. With electricity rates rising, worries have spread that large-scale new data centres could add to the burden on local residents.

In materials released with the executive order, Hochul said data centre development could drive up public utility bills, deplete natural resources and create uncertainty for New York residents. She said it was her responsibility to act and lead in this situation. New York state appears to have considered power costs, water burdens and residents’ cost-of-living issues together.

Trump also drew a line on the principle of who bears the costs. He wrote that data centres should pay for the water and electricity they use, and that the remaining share should go to state government and local communities. It amounted to supporting efforts to attract data centres while opposing the shifting of infrastructure costs.

The issue is becoming a more sensitive political matter ahead of the U.S. midterm elections. Debate continues over how much of their power costs data centres should bear, and Democrats are putting cost-of-living pressures at the forefront. With residents’ backlash against new data centres still present, the likelihood has increased that conflict will continue between expanding AI infrastructure and local burdens on power and water.

As a result, New York state’s move is emerging as a test case that goes beyond a simple local regulation, drawing a line on how much industry should shoulder utility and resource burdens as AI infrastructure expands. The public clash between Trump and New York state is also expected to intensify political debate over that standard.