US Lawmakers Propose Halt on AI Data Center Growth Amid Energy Concerns

Two high-profile US lawmakers have proposed a halt on new data centre construction. Rep. Alexandria Ocasio-Cortez and Sen. Bernie Sanders introduced the bill to address concerns over electricity use, pollution, and rising costs tied to AI growth. The move has already sparked opposition from industry groups and fellow politicians.

Meanwhile, the White House is pushing Congress to create national AI rules instead of letting states set their own laws. The aim is to balance innovation with consumer and worker protections.

The proposed moratorium targets AI-focused data centres, which can consume as much electricity as 100,000 homes. Progressives argue these facilities are driving up power prices, increasing pollution, and straining water supplies. The bill also seeks to shield workers and communities from potential harms linked to rapid AI expansion.

Industry groups quickly criticised the plan. The Data Center Coalition warned of job losses, lower tax revenue, and slower digital services if construction stops. Tech giants like Google, Microsoft, and Amazon have pledged to protect customers from soaring electricity costs tied to their data centres. Opposition also came from within Congress. Sen. John Fetterman argued the pause could hand China an advantage in AI development. The White House, meanwhile, released its own AI framework. It focuses on child safety, preventing energy price spikes, protecting intellectual property, avoiding censorship, and educating the public on AI use. Despite the debate, the bill faces an uphill battle. Analysts say it is unlikely to pass in either the House or Senate. The US currently has around 48 gigawatts of data centre capacity, with billions in planned projects stalled in some states like Illinois. The White House wants Congress to step in before states create a patchwork of AI regulations. Their goal is to address concerns without stifling technological progress or economic growth.

The proposed moratorium highlights deep divisions over AI's rapid expansion. If blocked, the bill would leave existing state-level debates and voluntary industry commitments as the main checks on data centre growth. The White House's push for federal rules could shape how these conflicts unfold in the coming months.