Nationwide moratorium pitched for data centers
A Democratic congressional challenger in West Virginia proposed federal legislation for a two-year nationwide moratorium on large data centers, aiming to give local communities more say and require environmental studies. The proposed "Neighbors, Not Servers Act" also seeks to ban non-disclosure agreements between developers and public officials. This initiative reflects a broader discussion on data center regulation, with similar calls for action in Ohio's gubernatorial race.
Ace Parsi, a Democratic challenger for West Virginia's 2nd Congressional District, announced proposed federal legislation, the "Neighbors, Not Servers Act," which would impose a two-year nationwide moratorium on new data centers using 20 megawatts or more. Parsi, a Morgantown community organizer, stated this would be his first bill if elected, emphasizing the need for local communities to have a say in data center development. He cited concerns from voters across the political spectrum regarding the environmental, community, and utility cost impacts of these facilities.
During the proposed moratorium, the National Academies of Sciences, Engineering and Medicine would study the effects of data centers on public health, water, jobs, utility bills, property values, and the power grid. The bill would also fine developers up to $1 million daily for violating the pause and ban non-disclosure agreements (NDAs) between developers and public officials, a point of contention recently in Washington County, Ohio, regarding a proposed data center in Waterford.
Furthermore, Parsi's legislation would establish a referendum process, allowing communities to vote on data center approvals after developers disclose crucial project details like power and water usage, noise levels, tax breaks, and job creation. Incumbent Rep. Riley Moore, while supporting local control and responsible development, highlighted his co-sponsorship of the "Ratepayer Protection Act," which aims to ensure large data centers cover the full incremental costs of utility upgrades, thus protecting West Virginia ratepayers.
The debate extends to Ohio's gubernatorial election, where Democratic nominee Dr. Amy Acton has called for a conditional statewide moratorium on data centers. Her proposal includes prohibiting cost-shifting to ratepayers, banning NDAs, requiring union labor, zero environmental impact, and prioritizing brownfield sites. Republican nominee Vivek Ramaswamy's campaign website outlines requirements for Ohio data centers, including free electricity for nearby families, full property tax payments, and strict environmental standards with minimal water use, favoring brownfield sites over farmland.