Sanders and AOC Want to Freeze AI Data Center Construction Until Congress Acts

The Artificial Intelligence Data Center Moratorium Act would halt new facilities until federal laws address safety, jobs, and energy costs. It has almost no chance of passing.

Server racks in a data center with blue lighting

Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez want to stop all new AI data center construction in the United States. Their Artificial Intelligence Data Center Moratorium Act, introduced March 25, would freeze construction until Congress passes comprehensive AI regulation addressing safety, jobs, and environmental impacts.

The bill has virtually no chance of passing in a Republican-controlled Congress that just released a policy framework explicitly designed to accelerate data center permitting. But it marks the most ambitious federal legislative response yet to concerns about AI infrastructure’s growing footprint.

What the Bill Would Do

The moratorium targets data centers “used for the development or operation of artificial intelligence models at scale” that exceed certain electricity thresholds. New construction and upgrades would halt immediately.

The freeze would lift only after Congress passes laws in three categories:

Pre-market AI safety review. Federal agencies would review AI products before release to ensure they “do not threaten the health and well-being of working families, privacy and civil rights, and the future of humanity.”

Economic equity requirements. Laws ensuring AI’s economic gains benefit workers, including job displacement protections and requirements that tech company wealth be “shared with the people of the United States.”

Environmental and community protections. Legislation limiting new construction that increases electricity costs, harms the environment, prevents government subsidies, and requires union jobs. Communities would gain the ability to reject data center proposals.

The bill also directs the Commerce Department to prohibit exporting computing hardware like chips to countries without comparable regulations.

The Case For Stopping

Supporters argue the pause is necessary because data centers are expanding faster than regulatory frameworks can adapt.

The numbers are stark. By 2030, U.S. data centers may require 9% of national electricity—up from 4.4% today. A Bloom Energy report projects data center energy demand will nearly double from 80 to 150 gigawatts between 2025 and 2028, equivalent to adding Spain’s entire power consumption in three years.

Water consumption follows a similar trajectory. One hyperscale facility can use as much water as 2 million households. By 2028, data centers collectively could consume as much water as 18.5 million households.

“It has yet to be determined if—not how—the industry can ever operate in a manner that sufficiently protects people and society from the profusion of inherent hazards,” Food & Water Watch stated in supporting the bill.

Over 230 organizations have endorsed the moratorium. Lawmakers in more than 30 states have introduced over 300 data center-related bills this session, including local moratoriums.

Public polling supports the skepticism. An NBC News survey of 1,000 registered voters in late February found 57% agreed “the risks outweigh the benefits of AI.”

The Case Against

Critics from both parties call the moratorium economically and strategically dangerous.

“That would be idiocy,” Senator Mark Warner said of pausing data center construction, warning it would “disarm the U.S.” in competition with China. Senator John Fetterman agreed with Interior Secretary Doug Burgum’s characterization of moratoriums as waving “a surrender flag to China.”

The Data Center Coalition argues facilities “power modern life—from telehealth and digital classrooms to banking, air travel, financial transactions and online shopping.” 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.”

The Center for Data Innovation criticized the bill’s logic, arguing that legitimate concerns about AI safety, utility costs, and jobs “pursued in good faith” don’t lead to halting construction. The center suggested targeted alternatives: model evaluations and transparency requirements for safety, market design reforms for energy costs, and industrial policy for jobs.

Political Reality

The bill arrives one week after the White House released a National Policy Framework for Artificial Intelligence explicitly designed to streamline data center permitting and preempt state-level regulations. The administration has positioned AI infrastructure expansion as a national security imperative.

Neither chamber of Congress appears likely to advance the moratorium. But Sanders and Ocasio-Cortez aren’t necessarily expecting passage. The bill crystallizes a policy position that may gain traction as energy prices rise and data center impacts become more visible.

“We need to give ourselves time to understand the risks,” Sanders said, emphasizing public concern about “billionaire-driven AI development.”

What This Means

The moratorium debate exposes a fundamental tension in AI policy: the perceived urgency of competing with China pulls toward maximum infrastructure acceleration, while concerns about local impacts, energy costs, and safety argue for more deliberate expansion.

The bill’s requirements for lifting the moratorium—pre-market AI review, wealth sharing, community veto power over facilities—represent a maximalist vision that even AI-skeptical lawmakers may find excessive. But the underlying concerns are real and widely shared.

Data centers are being built now. Their energy and water demands are locked in for decades. The question of whether communities can reject facilities they don’t want, or whether AI developers face any pre-deployment oversight, won’t be resolved by this bill. But it will keep being asked.

What You Can Do

Follow local developments. Data center moratoriums and zoning battles are happening at state and municipal levels across the country. Your local decisions may matter more than federal legislation.

Understand your energy bills. As data center demand grows, electricity costs will increasingly reflect it. Know what’s driving your rates.

Engage with your representatives. Whether you support or oppose the moratorium, this is a concrete bill that invites constituent feedback. Legislators track responses to controversial proposals.

Consider the tradeoffs. The debate isn’t simply “AI good” or “AI bad.” It’s about who bears the costs and who captures the benefits of infrastructure decisions being made right now.