New York State’s decision to halt the construction of large-scale artificial intelligence (AI) data centers has ignited controversy in U.S. political and energy circles. Opponents warn that the move could not only drive away investment and jobs but also weaken America’s ability to compete with China in AI. U.S. Democratic Senator John Fetterman didn’t hold back on social media platform X, bluntly stating, “China wins.”
According to a report from Fox Business on the 15th, New York Governor Kathy Hochul recently signed an executive order, making the state the first in the U.S. to ban new large AI data centers. The ban could last up to a year, during which the state government will assess the impact of large data centers on the power grid and energy supply.
Hochul defended the decision, arguing that New York’s grid is already near capacity and can’t handle the electricity demand from more large data centers. She pointed out that a single 50-megawatt data center consumes as much electricity as about 50,000 homes.
However, this reasoning has drawn sharp criticism. U.S. Energy Secretary Chris Wright said Hochul “has it completely backwards.” He argued that large data centers won’t drive up electricity prices; instead, they’ll boost investment in energy infrastructure, ultimately lowering costs. He also blamed the state’s rising electricity rates on Democratic green energy policies.
Critics believe the impact of restricting AI infrastructure won’t stop at New York’s borders but could weaken the entire country’s competitiveness and push related investments to other regions or even overseas. Fetterman voiced his concerns on social media, echoing the same sentiment—”China wins.”
The report highlights that as AI rapidly evolves, the demand for computing power keeps surging, and states are competing to lure tech companies to build data centers. The U.S. continues to elevate the AI race to a national strategic priority and repeatedly sees China as a major rival. Domestically, the debate over how to balance AI development, energy supply, and industrial policy is growing more intense as computing needs skyrocket.