Trump Calls New York Data Center Moratorium a "Terrible Decision"
Miles Bennett
New York Governor Kathy Hochul signed an executive order pausing environmental permits for large data centers above 50 megawatts for up to one year, making New York the first U.S. state to impose such a ban. Trump attacked the move, business leaders pushed back hard, and related stocks slid — setting up a clash that could define data-center regulation nationwide.
What exactly did New York ban?
Hochul signed an executive order Tuesday imposing an environmental-permit moratorium of up to one year on data centers exceeding 50 megawatts.
During the pause, the state will draft a regulatory framework aimed at preventing data centers from driving up residential electricity bills and straining water supplies.
This means → New York is now the first U.S. state to impose a moratorium on large data centers — a precedent with national implications.
In plain terms = this is not a permanent ban; it is a "pause button" while the state writes the rules.
Why did the White House and business leaders react so strongly?
Trump posted on Truth Social calling the moratorium a "terrible decision" and demanding New York reverse course immediately, calling data-center tax revenue and jobs "liquid gold."
Hedge-fund billionaire Dan Loeb, founder of Third Point, called it "the dumbest move since Alexandria Ocasio-Cortez single-handedly killed the Amazon Queens HQ."
He warned the order would "drive away billions in investment and hand thousands of jobs to red states."
This reflects a deeper anxiety among New York's business community: the state's business climate is deteriorating.
Why the Amazon HQ comparison?
In 2019, Amazon abandoned plans for a second headquarters in Long Island City, New York, after fierce pushback from local officials and residents.
Ocasio-Cortez criticized the $3 billion tax-incentive package and raised concerns about strain on public transit.
This means → Loeb's analogy points to the same pattern: New York actively driving away major investment through policy resistance — and this is not the first time.
Which companies have already taken a hit?
TeraWulf was hit hardest — its stock fell over multiple sessions with a cumulative decline of nearly 19%, erasing roughly $2.06 billion in market cap and breaking below its 50-day moving average.
In plain terms = TeraWulf owns the Lake Mariner data-center campus and the under-construction Cayuga project in New York State; the moratorium strikes at its core operations.
CoreWeave and Nebius dropped 4% and 7.8% respectively on Tuesday; Riot Platforms, Cipher Digital, and Hut 8 also fell.
What does Wall Street think about the real impact?
Several firms see limited structural damage to TeraWulf.
Cantor Fitzgerald maintained its overweight rating with a $37 price target; Rosenblatt analyst Chris Brendler reiterated a buy rating at $30.
Brendler's view: the event is "more headline risk than structural risk."
This means → Wall Street is betting the moratorium is unlikely to become a permanent ban; the near-term sell-off is sentiment-driven.
What comes next?
Hochul faces a two-front pressure test: she wants to attract businesses to New York, but she also faces a November re-election campaign and must answer voters' concerns about data centers affecting their communities.
Whether New York can sustain the moratorium until the regulatory framework is complete — under simultaneous pressure from the federal government and the business lobby — is the key inflection point for this policy's trajectory.
In plain terms = Hochul is squeezed from both sides — voters want environmental protection, capital wants construction. How long the moratorium holds depends on which pressure hits its limit first.
Content is for reference only, not financial advice.