In a post on Truth Social, he called the move "a terrible decision" and said data centers are "tremendous WINS" for communities lucky enough to get them.
The pause is scheduled to remain in effect for as long as twelve months. It stops new large data centers from getting environmental permits while the state figures out a better set of rules.
Trump's criticism landed on July 15, 2026 - and that timing matters.
Trump is not the only one unhappy. Dan Loeb, head of the hedge fund Third Point LLC, called it the "stupidest move since @AOC single-handedly shut down the proposed Amazon fulfillment center in Queens." He pointed to billions in investment and thousands of jobs heading to red states instead.
That Amazon reference is a sore spot for New York. Amazon scrapped its planned second headquarters in New York City in 2019 after facing local pushback; Representative Alexandria Ocasio-Cortez was among those who objected to the $3 billion in tax incentives the company would have received.
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Hochul knows the stakes. On the Odd Lots podcast, she said, "I understand how important AI is. '"We are in a revolution. The winds of change are coming in at hurricane force, and it's disruptive, but it'll also be very positive".'" Her order is an attempt to get ahead of that disruption by creating clear rules before more data centers are built.
The conflict highlights a broader tension between economic development and environmental regulation. Data centers consume massive amounts of electricity and water, straining local grids in states like Virginia and California.
For investors, the fight over data centers is about where the next wave of AI infrastructure will get built. New York is a huge market, but it is also expensive and politically tricky.
Hochul has to balance two groups.
Business leaders want fast approvals and big tax breaks. Local communities worry about energy bills and water use.
The one-year pause gives her time to write new regulations, but it also gives her opponents time to make their case before voters go to the polls.
The bottom line: This is not just a New York story. Every state is figuring out how to handle the explosion of data centers needed for AI.
These regulatory battles are worth keeping an eye on, because where the centers go, so do jobs, construction spending, and stock moves in the companies that supply them.
For now, New York has hit pause - and the rest of the country is watching.
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