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Trump Defends Data Centers, Deepening GOP Rift as States Pause Projects

His public push heightens a federal-versus-local clash over electricity, water and permitting while investors warn community opposition could slow AI infrastructure.

Overview

  • President Donald Trump wrote on Truth Social Monday that communities that reject data centers will “end up being backwards and poor,” marking a forceful public defense of rapid AI facility buildouts.
  • States and localities have moved to restrict or pause projects, including New York’s one-year moratorium and Texas and Pennsylvania actions that limit approvals and require audits of power and water plans.
  • The White House has promoted voluntary measures such as a Ratepayer Protection Pledge and has used executive steps to speed permitting and trim some public-input rules for data-center projects.
  • Market analysts and investors from firms including Citadel, Morgan Stanley and Wolfe Research say local permitting fights and voter backlash are now material investment risks that could delay or cancel projects.
  • The dispute has become a sharp midterm issue, with public polls showing broad opposition to nearby data centers and party operatives warning the issue may cost incumbents races as candidates split on support.