US Senators Propose Federal Moratorium on New AI Data Center Construction

Sanders and Ocasio-Cortez Introduce Bill to Halt Data Center Expansion Nationwide March 25, 2026 In a significant move to address the rapid and largely unregulated growth of artificial intelligence infrastructure, U.S. Senator Bernie Sanders (I-Vt.) and Representative Alexandria Ocasio-Cortez (D-N.Y.) have introduced federal legislation calling for a nationwide moratorium on new data center construction. The proposed Artificial Intelligence Data Center Moratorium Act underscores mounting political and public concern over the societal and environmental impacts of the AI boom. The bill, introduced on March 25, seeks to impose a temporary ban on new data center developments across the United States. This federal pause would remain in effect until Congress passes new legislation establishing comprehensive guardrails. The intended protections aim to safeguard workers and consumers, prevent environmental harm, and defend civil rights in the face of accelerating AI adoption. Senator Sanders framed the initiative as a necessary response to a technological revolution. “AI and robotics are creating the most sweeping technological revolution in the history of humanity,” Sanders stated. “The scale, scope, and speed of that change is unprecedented. Congress is way behind where it should be in understanding the nature of this revolution and its impacts.” The push for a moratorium reflects a broader trend of regulatory scrutiny. Officials in at least 13 states, including Virginia, Georgia, and New York, have called for state-wide bans, while numerous local municipalities are considering their own development freezes. Some jurisdictions are exploring the removal of tax incentives to disincentivize new projects. The proposal has drawn sharp criticism from industry representatives. The Data Center Coalition warned that a federal construction halt "risks rationing access to digital services, impairs our global competitiveness, and will have substantial impacts on Americans’ daily lives." Cy McNeill, the coalition's senior director of federal affairs, emphasized the industry's commitment to "working with communities... to ensure the continued responsible development of this industry." While the bill's passage is considered unlikely in the current political climate, it signals growing pressure for federal action to manage the infrastructure demands of AI, which requires massive amounts of power and water. The debate also intersects with broader policy discussions on energy grid reliability and the appropriate level of government oversight for emerging technologies. Source: datacenterdynamics