Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez announced legislation on Wednesday that would pause all new AI data centre construction nationwide until AI safeguards are in place. The proposal marks one of the most aggressive federal attempts to regulate artificial intelligence infrastructure, but its prospects in Congress are slim.
Under the Artificial Intelligence Data Center Moratorium Act, the ban on new construction could only be lifted after the passage of federal AI legislation that would establish protections for workers and consumers, prevent harm to the environment and defend civil rights. The bill would mandate not only an immediate pause on new data centre construction but also on the upgrading of existing ones.
The rationale for such a drastic step reflects the lawmakers' view that artificial intelligence is advancing faster than government can develop appropriate guardrails. Ocasio-Cortez noted that AI was responsible for over 54,000 layoffs nationwide in the previous year, adding that "all of this harm has occurred not in spite of, but because of, the absence of federal legislation to regulate AI." Sanders argued that the technology threatens to reshape the economy and democracy, stating "we need serious public debate and democratic oversight over this enormously consequential issue."
The environmental dimension of the proposal cannot be separated from the economic concerns. US data centres consumed 183 terawatt-hours of electricity in 2024, accounting for more than 4 per cent of the nation's total electricity consumption, and are projected to grow by 133 per cent to 426 TWh by 2030. A typical AI data centre uses as much electricity as 100,000 households, and the largest under development will consume 20 times more. Current growth trajectories could put 24 to 44 million metric tons of carbon dioxide annually into the atmosphere by 2030, alongside water drainage equivalent to the annual usage of 6 to 10 million Americans.
Communities across the United States have seen backlash against data centres over fears about rising electricity prices and concerns about pollution and water consumption. More than 100 local communities around the country have enacted moratoriums on data centres, and 12 states are pushing forward with statewide moratorium proposals. This grassroots opposition provides political cover for the Sanders-Ocasio-Cortez bill, even if the broader legislative landscape works against it.
The counterargument, however, carries considerable force. Democratic Senator John Fetterman said he agreed with warnings that a data centre moratorium amounts to waving a "surrender flag" to China, writing "I refuse to help hand the lead in AI to China." Most lawmakers of both parties have rejected the idea of a moratorium. This concern reflects a real strategic anxiety in Washington; the Trump Administration has repeatedly framed AI dominance as essential to national competitiveness.
The broader regulatory context makes passage unlikely. While Congress has introduced hundreds of bills including the term artificial intelligence, fewer than 30 have been enacted as of May 2025, with nearly half consisting of AI-focused provisions in appropriations or national defence authorisation legislation. There is still no overarching "AI Act" at the federal level, though state laws begin to take effect in 2026 while the federal government signals increased willingness to contest or preempt certain state approaches.
What the bill does accomplish, however, is to force a public reckoning with the true costs of the AI boom. A December poll found that 60 per cent of Americans, including majorities of Democrats, Republicans and independents, support more AI regulation. This suggests that public concern about unchecked technological expansion is broad, even if lawmakers remain divided on solutions.
The Sanders-Ocasio-Cortez proposal ultimately reflects a fundamental tension in US technology policy: how to maintain competitive advantage in AI while managing legitimate environmental, labour, and social costs. Data centre projects could potentially be on hold for years under the bill, as Congress is far from passing any AI legislation. That impasse, more than any moratorium, may be the real constraint on infrastructure expansion.