Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez introduced legislation aiming to temporarily halt the construction and expansion of large AI data centers across the United States. Their proposal focuses on facilities that power artificial intelligence applications and require substantial energy and cooling resources, targeting those with high electricity demands and advanced hardware setups.
This moratorium, named the Artificial Intelligence Data Center Moratorium Act, would pause new projects until federal regulations are established to manage their environmental and economic effects. Specifically, the bill addresses data centers drawing over 20 megawatts of power, using liquid cooling systems, and containing server racks rated above 20 kilowatts. Before any project could proceed, developers must prove that their facilities would not increase consumer electricity rates or raise greenhouse gas emissions. Additionally, projects would require approval from local authorities, could not receive government subsidies, and would be mandated to create unionized jobs.
The proposal emerges amid growing local resistance to data center construction linked to issues such as rising power bills, excessive water consumption, noise pollution, and environmental strain. More than 100 municipalities have already implemented their own moratoriums on data centers, while a dozen states consider statewide pauses. At its core, this federal action seeks to give communities a stronger voice in managing industrial growth in their neighborhoods and to prevent unchecked energy demands that could exacerbate climate change.
Supporters argue the moratorium is necessary to curb the rapid expansion of AI infrastructure that risks burdening electric grids and increasing fossil fuel consumption. Opponents warn that such a freeze could slow AI innovation, reduce investment, and impede job creation in a globally competitive sector. Some experts advocate for a balanced strategy emphasizing stricter efficiency standards, community benefit agreements, and consumer protections instead of a full halt.
Under the bill, the pause would last until comprehensive federal rules for AI product review and deployment are in place. It also directs the Department of Energy to provide Congress with quarterly reports detailing the data centers' impacts, covering electricity and water use, pollution, wastewater discharge, and noise levels. This measure fits into a broader trend of regulatory scrutiny at local and state levels as the AI-related infrastructure boom accelerates nationwide.