After New York’s Democratic governor enacted a temporary ban on the construction of large data centers to curb their enormous power consumption, President Donald Trump’s energy secretary, Chris Wright, made the evidence-free claim that the facilities are actually the “greatest tool” for reducing the sharp increases in energy prices.
On Tuesday, Gov. Kathy Hochul signed an executive order barring for one year the construction of “hyperscale” data centers that can consume 50 megawatts of power or more, saying that unchecked expansion “threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers.”
New York was the first state to place a moratorium on data center development, and more than a dozen other states have considered enacting moratoriums as evidence has mounted that data centers tend to spike power demand and drive up costs.
But as the rapid growth of data centers has sparked furious backlash in communities of all political stripes, the industry has maintained a steadfast ally in the Trump administration, which has continued to champion rapid data center buildout by fast-tracking permits, opening federal land to developers, promoting new energy infrastructure, and offering federal financing and tax incentives to new projects.
On Wednesday morning, Wright took to Fox News to blast Hochul’s block on data center development.
“Gov. Hochul has it exactly backward,” he said. “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, a former fracking executive, protested that “Democrat green energy policies” were responsible for driving up energy prices in New York, pointing to its ban on fracking, the blocking of a major natural gas pipeline, and an “insane climate law” requiring the state to transition away from fossil fuels by 2040.
“Energy is extremely expensive in New York and now sparse because of bad Democrat policies,” he said. “Nothing to do with data centers.”
Wright did not elaborate on how exactly data centers could be used as a “tool” to bring down energy prices. But if this is the case, nobody has informed the energy companies themselves.
His comments came just a day after PJM, which serves 67 million customers and is the nation’s largest electric grid operator, released the results of an electricity auction that added $6.3 billion in costs to consumers’ energy bills in 2028-29 due to growth in energy demand.
“The primary driver of that growth is data centers,” the company said in a press release. “New data center facilities and expansions of existing sites can be developed quickly, up to two to three times faster than many of the electricity generation technologies that are necessary to serve them and allow PJM to maintain the reliability customers expect.”
That increase is not confined to the future. It has already begun. According to Monitoring Analytics, PJM’s independent market monitor, since 2024, the auctions have added $29 billion in costs to the customers across the 13 states plus Washington, DC, where it operates. New York is not one of the states supplied by the PJM grid.
The Natural Resources Defense Council has found that recent PJM auction increases have added as much as $20-30 to monthly bills in some parts of the company’s regions, and projects that continued data-center growth could eventually add roughly $70 per month for an average household.
The labor-focused media organization More Perfect Union, which has published many pieces documenting the effects of data centers on American communities, called Wright’s claim “one of the most blatant lies we’ve ever heard.”
“Data centers are pushing energy prices up,” the outlet said. “That is not a matter of debate, it’s a fact.”
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