House Energy and Commerce Committee ranking member Frank Pallone (D-NJ) has called for a national moratorium on data centers, a significant addition to the growing opposition to the construction of the facilities nationwide.
“I am in favor of a national AI data center moratorium until we can find a way to ensure they don’t harm our nation’s air, water, and power bills,” Pallone said Wednesday at a committee event to advance legislation regulating data centers’ energy use.
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“The committee has to take more aggressive action to ensure that data center developers are held accountable and that consumers aren’t left holding the bill,” Pallone said.
Pallone’s new support for a nationwide ban on data centers makes him one of the highest-ranked Democrats to take this stance. Others who have called for a moratorium include Rep. Alexandria Ocasio-Cortez (D-NY) and Sen. Bernie Sanders (I-VT), who introduced a bill in March to pause new data center development as lawmakers work on regulations for artificial intelligence.
Public opposition to data centers has arisen in communities across the country as residents raise concerns about energy costs, water supply, and noise pollution. A Gallup poll conducted in early March found that 7 out of 10 people oppose constructing data centers for AI in their area, with 48% strongly opposed to the idea.
Data centers have been associated with rising energy demand and costs. Data center electricity consumption has risen steeply in the past few years, with Pew Research estimating it will rise 133% by 2030.
Pallone made his comments at an energy subcommittee markup of several bills aimed at addressing demands on the electrical grid.
One of the bills passed out of the subcommittee was the Ratepayer Protection Act, which was proposed by Reps. Kathy Castor (D-FL) and Gabe Evans (R-CO). The bill is intended to prevent the surge in energy demand for data centers from increasing household electricity costs.
Specifically, the bill would require state regulators to create standards for large-load customers to cover the costs related to new generation, transmission lines, and other upgrades.
“The bills we’re discussing today will not address all of the challenges facing the high cost of energy and the need to upgrade a grid, but they take an important step in the right direction,” Castor said in the hearing.
Tech giants Microsoft and Google have expressed support for the bipartisan legislation. Microsoft described the bill as an “important step” to ensure utility customers do not bear the cost as energy demand continues to increase.
The legislation mirrors the White House’s ratepayer protection pledge in March, through which a number of tech giants — including Google, Microsoft, and Amazon — vowed to secure their own power to prevent costs from affecting homeowners.
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The Trump administration has been supportive of the rapid growth of data centers to advance artificial technology, arguing it is essential to compete with China. Republicans on the subcommittee also voiced concerns about losing a competitive edge against Beijing.
“Two things can be true, the AI phenomenon, that toothpaste ain’t going back into the tube,” Evans said. “The only question is, do we lead in it or do we cede ground to the Chinese? And if you’re concerned about AI, you need to be terrified about what happens if Communist China is leading in this space.”
