Sanders and AOC just proposed banning all new AI data centers

Senator Bernie Sanders and Rep. Alexandria Ocasio-Cortez just introduced one of the most aggressive pieces of AI legislation yet: a nationwide ban on building new data centers until Congress passes comprehensive AI regulations.

The bill, called the Artificial Intelligence Data Center Moratorium Act, would freeze all new construction permits immediately. The ban could only be lifted after federal legislation is passed that protects workers, consumers, and the environment from AI's growing footprint.

Your electricity bill is already paying for AI

This isn't a hypothetical problem. U.S. electricity prices jumped 31% between 2020 and 2025 — compared to just 4% in the previous five-year period. In areas near major data centers, wholesale electricity costs have surged up to 267% higher than they were five years ago.

Baltimore residents saw their monthly bills jump by more than $17 after a power auction hit record highs. Western Maryland and Ohio residents face increases of $16-18 per month. And this is just the beginning — prices are expected to climb another 40% by 2030.

54 communities already said no

The federal bill didn't come out of nowhere. Across the country, local communities have been fighting back on their own. At least 63 local moratorium actions have been introduced in towns and counties — and 54 have already passed. At least 12 states have filed their own moratorium bills in current legislative sessions.

Between May 2024 and March 2025, local opposition helped tank or delay $64 billion in planned data center projects. Communities are citing noise pollution, farmland loss, water depletion, and skyrocketing utility bills as reasons to push back.

What the bill actually requires

The moratorium wouldn't just pause construction — it sets conditions for lifting the ban. Before any new data center can be approved, Congress would need to pass legislation that:

Will it actually pass?

Realistically, this faces an uphill battle. The Trump administration's AI framework urges Congress to do the opposite — streamline federal permitting for data centers and even prohibit states from regulating AI on their own. The White House just appointed 13 tech CEOs to its advisory panel, signaling a pro-industry approach.

But the bill doesn't need to pass to have impact. It puts a number on the problem and gives local communities political cover to resist data center expansion in their backyards. And with 64% of Americans already worried about utility costs from data center expansion, the pressure isn't going away.

Sanders put it bluntly: Meta alone is building a data center in Louisiana the size of Manhattan that will consume as much electricity as 1.6 million homes.

If you're paying more for electricity — this is why

Whether you use AI tools daily or have never opened ChatGPT, the infrastructure powering these services is already affecting your wallet. Data center demand now accounts for 40% of U.S. electricity demand growth, and the costs are being passed directly to residential customers.

To check if data center expansion is affecting your area, look up your utility provider's recent rate change filings — many are publicly available on your state's public utility commission website.

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