Key House Democrat Calls for a National Data Center Moratorium
Representative Frank Pallone (D-NJ), ranking member on the House Energy and Commerce Committee, has called for a national moratorium on AI data center construction. He argues that current legislative proposals are insufficient to address the harms to air, water, and power bills caused by rapid data center proliferation. Pallone cites local opposition and actions in New Jersey and New York as evidence of the need for a national pause.
Representative Frank Pallone (D-NJ), the ranking Democrat on the House Energy and Commerce Committee, has issued a forceful call for a national moratorium on AI data center development. Speaking ahead of a committee markup on data center-related bills, including the Ratepayer Protection Act, Pallone dismissed the proposed measures as merely a "useful first step" that falls short of addressing the significant challenges facing the American power grid.
Pallone expressed deep concern over the rapid expansion of data centers, stating, "This simply cannot continue." He argued for a national moratorium "until we can find a way to ensure they don't harm our nation's air, water, and power bills." In supporting his position, Pallone highlighted local efforts in his home state, such as a resolution in Asbury Park advocating for a statewide moratorium and the city of New Brunswick's rejection of a data center project earlier this year. He also noted the New York State legislature's recent passage of a one-year data center moratorium, currently awaiting Governor Kathy Hochul's signature.
Pallone is not alone in his call, joining other prominent progressive Democrats like Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez, who have also advocated for a nationwide pause on AI development and data center construction. Public sentiment appears to align with these calls, with recent polling by Heatmap indicating a majority of Americans support a nationwide moratorium, and a growing percentage blaming data center construction for rising electricity bills.
Despite analysts finding inconsistent links between data centers and electricity price increases, the article points to specific regional impacts, such as in New Jersey's PJM Interconnection market, where data center load has been attributed to billions in added capacity costs. New Jersey Governor Mikie Sherrill implemented a rate freeze this year in response to significant electricity price hikes. Pallone remains skeptical of industry promises and current regulatory efforts, emphasizing that Congress must take the "political groundswell" of opposition seriously.