Policymakers weigh temporary national moratorium on AI data centers

Troutman Pepper Locke · May 14, 2026 · ✓ verified

On March 25, 2026, Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez announced the Artificial Intelligence Data Center Moratorium Act.

  • Main announcement: The Artificial Intelligence Data Center Moratorium Act, introduced by Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez on March 25, 2026, would impose a nationwide halt on constructing or upgrading new or existing data centers with a power demand of 20 megawatts (MW) or more until “strong national safeguards” are in place; the Act also seeks to bar government subsidies, require union labor/prevailing wages, and give affected communities ability to approve or reject projects.
  • Background and related measures: Multiple state and local actions are cited including New York Senate Bill 9144 (prohibits permits for data centers capable of using 20 MW or more until new regulations), indefinite local moratoriums (e.g., Oldham County, KY), over 100 localities with moratoria, a reported $156 billion across 48 projects blocked or delayed in 2025, and the Port Washington, WI referendum requiring voter approval for tax-increment financing for projects with base value or project costs over $10 million; Virginia legislative action (Senate Bill 30) would end a sales/use tax exemption for certain data center equipment on January 1, 2027.
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