Trump calls AI data centers ‘cash cows’ as New York bans new projects and Florida rejects expansion
President Donald Trump is doubling down on his support for AI data centers, calling them future job engines and “cash cows” for states, even as opposition to the projects grows across the country.
Trump criticized New York after Governor Kathy Hochul announced the nation’s first statewide moratorium on new large-scale AI data centers. At the same time, county commissioners in Palm Beach County, Florida; home to Trump’s Mar-a-Lago estate; voted to reject a proposed expansion of a nearby AI data center following months of community opposition.
The developments underscore a growing national debate over AI infrastructure, with supporters pointing to economic growth and technological competitiveness, while opponents warn about electricity demand, water use, environmental impacts and quality-of-life concerns.
Trump calls data centers future job creators
Trump took to Truth Social last week to condemn New York’s decision to halt new hyperscale AI data centers, arguing the state was driving investment elsewhere.
“One of the biggest Driving Forces in the Future for Jobs, are Data Centers. They are big, strong, bold, and Money Machines for the State in which they are built.”
He said companies would instead expand in states such as Alabama, Florida, Texas and Arizona, adding that the economic benefits were substantial.
“Both the Taxes and the Jobs amount to LIQUID GOLD!… Data Centers are sought as Cash Cows, with Lower Taxes and Record Setting Jobs.”
Trump also argued that operators should bear the costs of infrastructure.
“They must pay for their own Water and Power, and any leftover goes back to the State and local Community.”
He concluded by urging New York to reverse course immediately, warning the U.S. risks falling behind China in AI development.
New York becomes first state to pause hyperscale data centers
On Tuesday, Governor Kathy Hochul signed an executive order imposing a temporary statewide moratorium on new hyperscale AI data centers that consume, or could consume, at least 50 megawatts of electricity.
The pause is expected to last up to one year while state agencies study the industry’s impacts on electricity demand, water use, air quality and local communities.
The Department of Environmental Conservation was directed to pause discretionary permits for projects whose applications were not already deemed complete. Meanwhile, the Department of Public Service will prepare a Generic Environmental Impact Statement evaluating the industry’s long-term effects.
Facilities primarily used for manufacturing, research, education or medical care are exempt.
Hochul says communities deserve more benefits. She said the rapid expansion of AI infrastructure requires stronger planning before additional projects move forward.
“We’re in the midst of one of the most significant economic upheavals in generations … perhaps ever.”
She added: “These hyperscale AI data centers consume enormous amounts of power, truly threatening to outpace our grid’s capacity. They drive up costs for local ratepayers, and I refuse to let those costs get passed down to New Yorkers.”
Responding to Trump’s criticism, Hochul wrote on social media: “If data centers are really ‘LIQUID GOLD,’ then New Yorkers deserve more than scraps. We hit pause because the communities powering AI should share in its success. Maybe that’s a novel concept in Washington. We call it doing our job.”
Rising electricity costs helped drive the moratorium
State officials said New York’s average residential electricity prices have climbed nearly 68% since 2019, contributing to concerns over additional demand from AI facilities.
Environmental organizations have also argued that hyperscale data centers consume enormous quantities of electricity and freshwater while placing additional strain on local infrastructure.
Laura Shindell, director of New York’s Food & Water Watch, welcomed the decision.
“This one-year moratorium is a huge step forward for New York communities fighting against an onslaught of massive data center proposals.”
Sen. Kirsten Gillibrand also backed the pause. “This one-year moratorium is fundamentally about trust. Right now, New Yorkers aren’t convinced these massive facilities benefit them.”
State Sen. Kristen Gonzalez added: “Technology should make our lives better, not pollute our water, strain our energy grid, or drive up our utility bills.”
Critics warn New York risks losing investment
Not everyone supports the moratorium.
Republican Assemblyman Scott Gray and several colleagues argued in a letter that statewide restrictions would discourage investment while overriding local decision-making.
“A statewide moratorium is the wrong answer to the right questions.”
They added: “Siting belongs to local communities. Albany’s job is to set the regulatory framework… It is not Albany’s job to decide for a town or village whether it wants one of these projects.”
Pennsylvania Sen. John Fetterman also criticized the move in a post on X, writing simply: “China wins.”
Palm Beach commissioners reject Project Tango expansion
While Trump promoted data centers nationally, commissioners in Palm Beach County voted 5-1 to reject a proposed expansion of Project Tango, a hyperscale AI campus located roughly 20 miles west of Mar-a-Lago.
Developers had already received approvals for approximately 1.2 million square feet of warehouse space and a 206,000-square-foot data center. The latest proposal would have expanded the campus to roughly 3.6 million square feet.
After more than 12 hours of debate, commissioners denied the application without prejudice, allowing developers to revise and resubmit the proposal in the future.
The proposal drew months of public opposition, with hundreds of residents, teachers and community members attending hearings.
Commissioners questioned experts on issues including noise, vibration, water consumption, environmental effects and whether the project should be classified as light or heavy industrial use.
Developers argued the facility would use a closed-loop cooling system and comply with county noise standards.
Opponents countered that insufficient information existed regarding long-term impacts on nearby neighborhoods and Saddle View Elementary School.
Commissioners ultimately concluded the applicant had not adequately addressed concerns about the surrounding community.
Developer says existing approvals remain in place. Project spokesperson Ernie Cox expressed disappointment following the vote.
“We are disappointed with the Commission’s decision. We reconfirmed our commitment to all conditions asked of us associated with our request and we addressed concerns through in-depth technical studies and analysis.”
He added: “We remain committed to helping meet the region’s growing critical infrastructure needs and will be taking time to evaluate our options moving forward.”
Cox also said the county’s vote does not affect previously approved portions of the development. “That project goes forward.”
Opposition to AI data centers is growing nationwide
The debate extends well beyond New York and Florida.
A June Reuters/Ipsos poll found only one-third of Americans approve of the current pace of data center construction, while just 14% said they would support one being built in their own community.
Several states; including Delaware, Georgia, Michigan, Pennsylvania, South Carolina and Vermont; have introduced legislation related to restricting or regulating data center development. Similar proposals have failed in states including Maryland, Minnesota, New Hampshire, Oklahoma and South Dakota.
Meanwhile, the White House has reportedly been working with utilities and developers on a voluntary agreement intended to ensure taxpayers do not bear the costs of expanding AI infrastructure.
Michigan has become another battleground over AI infrastructure. One of the largest flashpoints is Saline Township, Michigan, where the $16 billion Stargate data center project; backed by Oracle, OpenAI, Related Digital, Blackstone and Walbridge; is moving ahead despite strong local resistance.
Residents have raised concerns about water supplies, electricity demand and preserving the area’s rural character.
“Most people aren’t interested in some massive development here,” said community activist Tammie Bruneau. “They’re interested in protecting the farmland.”
Developers say the project will create more than 2,500 union construction jobs, 1,500 countywide jobs, more than 450 permanent positions and billions of dollars in tax revenue.
Oracle has pledged to fund the energy and infrastructure required for the facility, saying it will have no impact on local ratepayer bills or grid reliability, while Related Digital says it will use closed-loop air cooling systems and preserve hundreds of acres of farmland, wetlands and woodlands.
As AI investment accelerates nationwide, the debate over balancing economic development with environmental protection and community concerns is becoming an increasingly important political issue across both Republican- and Democratic-led states.
The battle over AI infrastructure is only beginning
As AI investment accelerates, the conflict over data centers is emerging as one of the country’s newest political fault lines. The Trump administration is pushing rapid expansion as essential for job creation, economic growth and competing with China, while a growing number of states and local communities are demanding stronger safeguards against higher electricity costs, water consumption and environmental impacts.
With New York becoming the first state to impose a statewide moratorium and opposition mounting in places from Florida to Michigan, the debate over where and how America’s AI infrastructure is built is likely to intensify as more projects move from the planning stage to local approval battles.
With the midterms approaching; the debate is expected to intensify.
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John Dealbreuin came from a third world country to the US with only $1,000 not knowing anyone; guided by an immigrant dream. In 12 years, he achieved his retirement number.
He started Financial Freedom Countdown to help everyone think differently about their financial challenges and live their best lives. John resides in the San Francisco Bay Area enjoying nature trails and weight training.
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