New York's decision to pause the construction of large artificial intelligence data centers is drawing criticism from some lawmakers and energy officials, who argue the move could weaken the United States' ability to compete in the global AI race while encouraging investment to move elsewhere.
FOX Business' Madison Alworth joined "Varney & Co." host Stuart Varney to discuss New York's first-in-the-nation pause on large artificial intelligence data centers, the debate over the state's energy capacity and the broader concerns about U.S. competitiveness with China.
Critics argue that restricting new artificial intelligence infrastructure could have consequences beyond New York because demand for computing power continues to grow. Sen. John Fetterman, D-Pa., reacted on X to the state's decision with a brief warning: "China wins."
Gov. Kathy Hochul has defended the policy, arguing the state's electric grid cannot currently support additional large-scale facilities.
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"A giant data center, that one 50-megawatt center... consumes as much power as 50,000 homes… I've got an energy grid that is already overtaxed," Hochul said.
Energy Secretary Chris Wright disputed that argument, saying large technology projects can help strengthen energy investment rather than strain it.
"Gov. Hochul has it exactly backwards. Data centers are the greatest tool we have right now to stop the rise of electricity prices and ultimately to bring them back down," Wright said, "It's the Democrat green energy policies that have driven energy prices up in New York state."
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The debate comes as states weigh how to balance rising electricity demand, artificial intelligence investment and long-term energy planning while competing to attract technology companies.
