Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) are taking a big swing at the AI boom, rolling out the "Artificial Intelligence Data Center Moratorium Act" on Wednesday. The federal proposal would pause construction and major upgrades of AI data centers across the country until Congress passes new AI rules, and it would only lift that pause after lawmakers approve broad safeguards on product oversight, worker protections, ratepayer impacts and environmental limits. It is one of the most aggressive attempts yet to slow the buildout of the infrastructure that powers modern AI systems.
What's in the bill
According to Business Insider, the proposal would halt new construction and significant upgrades of AI data centers until Congress passes comprehensive AI regulations. The package would require government review and approval of new AI products, policies aimed at preventing job displacement, protections to keep new centers from raising residential electric bills or worsening climate change, and labor rules that require union construction on large projects.
Sanders' push and the political math
Sanders first floated a national moratorium in late 2025 and doubled down in a February statement from Sen. Bernie Sanders' office, calling for "serious public debate and democratic oversight" before the industry races ahead. The idea faces long odds in Congress, though. Axios reports that lawmakers are nowhere close to passing the kind of sweeping AI legislation the bill requires, meaning that if the moratorium cleared committee, it could effectively stall projects for years.
White House, industry and the ratepayer pledge
The push met immediate resistance from the administration's orbit and industry allies. Business Insider notes that White House advisor David Sacks blasted the proposal as "stopping progress completely so China wins the AI race." Rather than a freeze, the White House has signed up major tech firms to a "Ratepayer Protection Pledge" that commits companies to cover new power and grid-upgrade costs tied to hyperscale data centers, according to a fact sheet from the White House. Outlets such as WIRED and energy analysts have pointed out that the pledge is largely voluntary and difficult to enforce in practice.
State and local pauses are already spreading
The federal fight comes on top of state and local slowdowns already in motion. In Vermont, lawmakers introduced S.205, a bill that would block AI data center construction and site preparation work while the Public Utility Commission studies impacts on energy use, water demand and ratepayers. The text of the bill lays out a lengthy review and reporting process, according to the Vermont Legislature.
Why this matters on the ground
Policymakers and analysts warn that a federal pause could freeze projects already in the pipeline, making local permitting, utility interconnections and private construction contracts a lot messier. Axios notes that since Congress has not yet written broad AI rules, a moratorium could hold projects in limbo for years and function as a de facto brake on the industry while lawmakers argue over the safeguards the bill demands.
What's next
For now, the impact is mostly political. The proposal forces a national argument about who should cover the massive power tab for AI, how to shield workers from disruption and how to limit environmental fallout. At the same time, the White House rolled out its own National AI Legislative Framework on March 20 as a starting point for federal rules. The coming committee maneuvers and hearings will determine whether the Sanders-Ocasio-Cortez moratorium becomes a symbolic warning shot or the opening move in a real policy shift.
