Sanders and Ocasio-Cortez Introduce Federal AI Data Center Moratorium Bill

Efforts to temporarily halt the expansion of AI data centers have gained national attention with the introduction of new federal legislation and a growing number of state and local proposals.

On March 25, 2026, Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez introduced the “Artificial Intelligence Data Center Moratorium Act” at the U.S. Capitol. The bill would pause the construction and upgrading of AI data centers that support large-scale AI model development or operation, especially those with high electricity usage. According to the bill, the moratorium would remain in place until federal laws are enacted in three specific areas.

The proposed legislation outlines that the moratorium could be lifted if Congress passes laws requiring pre-release review of AI products for risks to health, privacy, civil rights, and humanity. Additional requirements include ensuring that economic benefits from AI are shared with workers and that job displacement is addressed, as well as establishing limits on data center impacts related to electricity costs, environmental effects, subsidies, community consent, and union employment.

Another provision in the bill would direct the Commerce Department to restrict the export of computing infrastructure hardware, including chips, to countries that do not have comparable regulations in place. This measure is intended to align international standards on AI data center oversight.

What the numbers show

• At least 12 states had introduced data center moratorium bills by early 2026
• Vermont’s S.205 proposes a moratorium until July 1, 2030
• New York’s S.9144 would pause new data centers over 20 megawatts for three years

State-level initiatives reflect a broader pattern, with Vermont’s S.205, introduced in January 2026, calling for a temporary halt on AI data center construction until July 1, 2030. During this period, Vermont’s Public Utility Commission would study the impacts and recommend a regulatory framework. The bill text specifies that no site preparation or construction may begin before the set date.

New York’s S.9144, introduced in February 2026, would impose a three-year statewide pause on permitting new data centers that exceed 20 megawatts. The bill requires the Department of Environmental Conservation to conduct a comprehensive environmental review and the Public Service Commission to report on utility impacts before any new permits are issued.

Beyond Vermont and New York, additional states such as Georgia, Oklahoma, Minnesota, South Carolina, South Dakota, Virginia, Michigan, and Maryland have also introduced bills to temporarily restrict new data center projects. By early March 2026, at least 19 municipalities in Michigan had enacted their own temporary moratoriums on data center development.

Sen. Sanders said in a statement that the proposed federal moratorium would allow time to evaluate the risks associated with AI and to protect working families. Rep. Ocasio-Cortez pointed to rising energy costs in areas near data centers and questioned whether the Trump administration’s “Ratepayer Protection Pledge” was effectively lowering consumer energy bills.

* This article is based on publicly available information at the time of writing.