U.S. Rep Frank Pallone backs national moratorium on AI data centers
U.S. Rep. Frank Pallone Jr. has called for a nationwide moratorium on new AI data centers, citing concerns over their rapidly increasing electricity demand, strain on the power grid, and rising costs for consumers. He argues for halting development until safeguards are in place for air and water quality and to prevent higher utility bills, referencing growing opposition and legislative actions in New Jersey and New York.
U.S. Rep. Frank Pallone Jr. (D-NJ) has called for a national moratorium on new AI data centers, citing their rapid expansion as a significant factor in increasing electricity demand, straining the power grid, and escalating costs for consumers. Speaking at a House Energy and Commerce Committee subcommittee markup, Pallone urged Congress to halt new data center development until comprehensive safeguards are established to protect air and water quality and mitigate rising utility bills.
Pallone highlighted data indicating that data center electricity consumption doubled between 2017 and 2023, with projections suggesting it could comprise over 15% of total U.S. electricity demand by 2030. He also pointed to mounting local opposition in New Jersey, specifically mentioning towns within his Sixth Congressional District such as Asbury Park, Red Bank, Old Bridge, Sayreville, and New Brunswick, where community efforts led to the abandonment of a proposed data center project in New Brunswick.
The congressman's advocacy aligns with broader national discussions concerning data centers' substantial electricity and water usage. This includes calls from environmental groups like Food & Water Watch, which have urged the New Jersey Governor and state lawmakers to implement a three-year moratorium. Additionally, the New York Legislature recently passed a bill to enact a one-year statewide pause on permits for large-scale data centers exceeding 20 megawatts, a measure currently awaiting Governor Kathy Hochul's signature. Similar legislative proposals for temporary moratoriums or stringent regulatory freezes are reportedly being considered in at least 11 other states.