Trump Slams New York Data Center Ban, Says Jobs Will Flee to Rival States

Trump urges New York to reverse a policy halting data center construction, warning the taxes and jobs will shift to Texas, Florida and other states.

First Published: July 15, 2026, 8:53 AM ET

WASHINGTON D.C. — Donald Trump urged New York to reverse a policy halting data center construction, warning the state is surrendering jobs and tax revenue to rivals.

Trump said Governor Kathy Hochul, the Democrat who leads New York, had for political reasons terminated all data centers being built or planned in the state. Companies are now being courted by Alabama, Florida, Texas, Arizona and other states offering lower taxes and what he called record-setting jobs, Trump said.

Here is the full post on Truth Social: “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. Governor Kathy Hochul, for political reasons, has terminated all Data Centers being built, or to be built, in New York State. These Companies are now being sought in Alabama, Florida, Texas, Arizona, and many other States. Both the Taxes and the Jobs amount to LIQUID GOLD! New York State has made a terrible decision. All of this Income, and other Benefits, will be going to Red States, and some Blue, where Data Centers are sought as Cash Cows, with Lower Taxes and Record Setting Jobs. They must pay for their own Water and Power, and any leftover goes back to the State and local Community. Data Centers are tremendous WINS for the States and Communities that are lucky enough to get them. New York should change its Policy, IMMEDIATELY. The Radical Left Dumocrats must not be allowed to cause us to lose Data Centers, AI, and all of this incredible new Technology, to China, and other countries! Trump” on July 15, 2026 at 12:39 PM ET.

This is the first message released by Trump today. On average, Trump produces roughly 15 posts per day since his inauguration on January 20, 2025.

The stakes fall on two sides. States that host data centers stand to gain construction jobs, property taxes and utility payments, while Trump argued New York risks losing that income. He said the facilities must pay for their own water and power, with any surplus returning to the state and local community.

Data centers have become a flashpoint as the artificial intelligence boom drives demand for computing capacity. The facilities consume large amounts of electricity and water, prompting some states and localities to weigh their environmental cost against the economic benefit. Trump framed the debate as a competition among states and warned that hesitation could push the technology to China and other countries.

For the average reader, the location of these facilities shapes local tax bases and electricity demand. A large data center can strain a regional power grid and raise water use, but it can also fund schools and roads through the taxes it pays, depending on how a state structures its incentives.

Has this happened before? This is not the first time Trump has pressed a governor to change course on economic policy through a public post. He has repeatedly used the platform to pressure Democratic-led states over taxes, energy and business regulation, contrasting them with Republican-led states he describes as more welcoming to industry.

The next decision rests with New York officials, who would need to revisit the policy Trump described. Hochul’s office has not announced a date for reconsidering the matter.

Disputes between presidents and New York governors over the state’s business climate stretch back generations, as happened before. In the early 1970s, Governor Nelson Rockefeller championed massive public construction projects while facing criticism that high taxes drove companies south. The debate over New York’s tax burden and its effect on business location has recurred for decades, and governors who ignored the pressure often watched employers relocate to lower-cost states.

The move fits a broader pattern in Trump’s recent messaging, with 57 of his 514 posts over the last 30 days focused on domestic policy.