Construction for data centers could be halted nationwide until restrictions on artificial intelligence are enacted under new legislation introduced by Sen. Bernie Sanders (I-VT) and Rep. Alexandria Ocasio-Cortez (D-NY) on Wednesday.
“A moratorium is hereby imposed on the construction or upgrading of all new AI data center projects until Congress passes comprehensive AI legislation that ensures the safety and prosperity of the American people,” the legislative text reads. “This moratorium shall not be lifted until legislation is passed and such legislation expressly terminates the moratorium.”
If passed, the bill would place a moratorium of unspecified length on infrastructure powered by the rapidly advancing technology.
Neither Sanders nor Ocasio-Cortez has said whether they’ll have Republican sponsorship on the bill, but many on the other side of the aisle have similarly argued for Congress to pass a national AI policy framework.
The Washington Examiner reached out to Sanders and Ocasio-Cortez for comment.
A key concern of the bill’s Democratic sponsors is the impact of rising electricity prices on residents caused by the power-consuming AI data centers. If a federal regulation on this issue were passed, the moratorium would be lifted.
“New or upgraded AI data centers must not increase the electric and utility bills of consumers, harm the environment, or make climate change even worse,” the document states.
Earlier this month, President Donald Trump entered into a ratepayer protection agreement with Big Tech companies, such as Google and Microsoft, that would help prevent those costs from burdening consumers. Now, Congress wants to ensure that goal is achieved through legislation.
The moratorium would also be lifted if regulations addressed governmental review and approval of AI products, AI-driven job displacement, and data center construction led by union workers, among other points of concern.
Sanders is set to introduce the bill on the Senate floor sometime on Wednesday.
“AI and robotics are going to bring cataclysmic changes to our society. Sadly, Congress has done virtually nothing,” he posted on X. “AI must work for working families, not the billionaires. Today, I’m introducing a moratorium on new data centers until we protect working people.”
Ahead of the progressive lawmakers’ announcement, the Data Center Coalition opposed the Artificial Intelligence Data Center Moratorium Act.
“A moratorium would limit internet capacity, slow critical services, eliminate hundreds of thousands of high-wage jobs, drain billions in local tax revenue, and raise costs for American families and small businesses,” Cy McNeill, the group’s senior director of federal affairs, said in a statement to the Washington Examiner. “In 2023 alone, U.S. data centers supported 4.7 million jobs and generated $162 billion in tax revenue that helps enable local tax relief, schools, roads, and public safety—while helping make life more affordable for communities where data centers operate.”
“A federal mandate to halt data center construction risks rationing access to digital services, impairs our global competitiveness, and will have substantial impacts on Americans’ daily lives,” he added, reiterating the Data Center Coalition’s commitment to working with lawmakers and the administration on AI infrastructure.
The latest Congress-led push to regulate AI comes days after the White House revealed its national AI policy framework. The document calls for an initiative to streamline data center permitting rules so that such facilities can generate their own power on-site.
The framework also reiterates Trump’s desire to preempt state-level AI regulations that impose “undue burdens” on residents, as opposed to a national standard that would be less burdensome. The framework, however, provides an exception for states that want to enforce AI protections for children.
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Congress is facing pressure from the White House and the AI industry to preempt state AI laws, though past legislative attempts to do so have met bipartisan resistance.
Trump made his latest contribution to the AI space on Wednesday, appointing Meta CEO Mark Zuckerberg, Oracle co-founder Larry Ellison, and 11 other business leaders to the President’s Council of Advisors on Science and Technology. The council is designed to advise Trump on AI policy.
