President Trump publicly demanded New York reverse its first-in-the-nation moratorium on large AI data centers, while Senate confirmation hearings for Todd Blanche and Jay Clayton turned combative over a range of politically charged issues.
President Donald Trump publicly attacked New York Gov. Kathy Hochul on Wednesday over a new executive order barring the construction of large-scale artificial intelligence data centers in the state for up to one year, while Senate confirmation hearings for two of his key nominees drew sharp questioning from Democratic lawmakers.
Hochul signed the executive order on Tuesday, making New York the first state in the country to impose a ban of its kind. The moratorium applies to data centers that consume 50 or more megawatts of power.
Trump responded on Truth Social, calling on the state to reverse course "IMMEDIATELY." "One of the biggest Driving Forces in the Future for Jobs, are Data Centers," Trump wrote. "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."
Trump also argued in his post that data centers "must pay" for their own water and power, with any surplus resources returned to state and local communities.
Hochul pushed back on X, defending the moratorium as a matter of fairness to residents bearing the costs of the AI buildout. "We hit pause because the communities powering AI should share in its success," she wrote. "Maybe that's a novel concept in Washington. We call it doing our job."
The confrontation comes amid growing public concern over the resource demands of data center construction, including fresh water usage and rising utility bills driven by surging AI infrastructure investment. Hochul cited those pressures directly in a press release announcing the order. "As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it's my responsibility to take action and lead," she said.
The dispute also carries political weight ahead of the midterm elections, with Democrats increasingly focused on affordability concerns and constituent frustration over large-scale data center development in their communities.
On Capitol Hill, the Senate held confirmation hearings Wednesday for two of Trump's nominees — Todd Blanche as attorney general and Jay Clayton as director of national intelligence — with both sessions turning contentious.
Blanche faced questions on a range of subjects, including the Jeffrey Epstein files and President Trump's settlement with the IRS. Senators also pressed him directly on whether Trump is eligible to run for a third term. "I don't believe he is," Blanche said.
Clayton's hearing drew its own friction. Sen. Jon Ossoff (D-Ga.), considered among the most vulnerable Senate Democrats facing reelection this year, pressed Clayton on the administration's engagement with debunked claims that the 2020 presidential election was fraudulent. Other Democratic senators joined Ossoff in pressing Clayton on the matter during the tense exchange.
The dual confirmation hearings and the data center clash together underscore a broader tension between the Trump administration's push to accelerate AI infrastructure development and state-level efforts to manage the costs and consequences of that expansion. How New York's moratorium holds up — legally and politically — will likely draw continued attention from both the White House and the technology industry in the weeks ahead.
Sara Montes de Oca is the Editor in Chief of TechEchelon. Previously a correspondent and producer in Washington, D.C., covering business, finance, and politics.
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