Proposed Legislation to Pause New AI Data Center Construction

Senators Sanders and Ocasio-Cortez have introduced a bill to ban construction of new AI data centers exceeding 50 megawatts of power for 2 years, citing environmental and resource concerns.

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The proposed legislation targets the 'uncontrolled expansion' of AI data centers, which have seen $80 billion in annual construction in the U.S. alone. A single large facility can consume as much electricity as 750,000 homes and draw millions of gallons of water daily from drought-stressed regions. The bill would impose a 24-month moratorium on federal permits and subsidies for any new data center projected to use over 50 megawatts of power, which is roughly the threshold for a major AI training facility. This would immediately halt dozens of planned projects across the country. The sponsors argue the rapid growth of AI infrastructure is driving up electricity bills for consumers and causing significant environmental damage. While tech industry groups have condemned the proposal, some executives acknowledge the need to address the externalities of unchecked data center expansion. The legislation signals a shift in how policymakers view AI as an environmental and resource allocation issue, rather than just an existential safety or job displacement concern.