President Donald Trump on Wednesday accused New York Gov. Kathy Hochul of driving away jobs and investment after she imposed the nation's first statewide moratorium on new hyperscale data centers.

"Governor Kathy Hochul, for political reasons, has terminated all Data Centers being built, or to be built, in New York State," Trump wrote on Truth Social. "These Companies are now being sought in Alabama, Florida, Texas, Arizona, and many other States."

Trump said Hochul's executive order would send billions of dollars in investment, tax revenue, and jobs to other states while weakening America's position in the global race for artificial intelligence.

Trump described data centers as "Money Machines" for states, adding that they generate jobs and tax revenue while paying for their own water and power needs.

"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!" he wrote.

Hochul signed the executive order Tuesday, immediately pausing state permitting for new hyperscale data centers, which house thousands of computer servers and consume large amounts of electricity and water.

"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," Hochul said in a statement.

The governor's office said the order directs state regulators to develop standards governing the environmental impacts, energy demand, water usage, and other issues associated with large-scale data centers before new projects can move forward.

Supporters of data center development have argued that restricting construction threatens economic growth and could leave the United States at a disadvantage in its competition with China to dominate the rapidly expanding artificial intelligence industry.

Trump echoed those concerns, saying New York's policy would push investment to states that welcome the facilities.

"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," he wrote.

The issue has also emerged as a political flashpoint in New York.

Hochul, who is seeking reelection, has faced pressure over rising energy costs and other affordability concerns.

Earlier this year, she softened some of the state's greenhouse gas reduction goals, citing increasing utility costs for consumers.

Her Republican challenger, Nassau County Executive Bruce Blakeman, opposes a statewide moratorium and has argued local governments should be allowed to negotiate data center projects with technology companies when they provide sufficient economic benefits.

New York lawmakers previously approved a moratorium bill, but Hochul's office said the legislation required additional work. The governor instead opted to impose the pause through executive order while regulators develop new standards.

Although New York has not attracted many of the nation's largest hyperscale data centers, similar moratorium proposals have surfaced in at least a dozen states.

Earlier this year, Maine Gov. Janet Mills vetoed a proposal that would have blocked a planned data center project in a community seeking to replace jobs lost after the closure of a paper mill.