Senator Bernie Sanders and Congresswoman Alexandria Ocasio-Cortez formally introduced the Artificial Intelligence Data Center Moratorium Act, a bill in Congress on March 25, 2026 that would place a temporary moratorium on the construction of new data centers used to develop AI technologies until federal rules to regulate the industry are developed and adopted. This reported The Guardian.
The publication explains that the initiative is aimed at slowing down the expansion of computing power underlying modern AI-systems, which consume huge amounts of electricity and water, as well as create a burden on public infrastructure. According to its authors, the industry is growing faster than the mechanisms for controlling its economic, social and environmental consequences are being formed.
How this will affect the market
Potential restrictions could directly affect major tech companies including Microsoft, Google and Meta, which are actively building infrastructure to develop AI products. If the proposals are supported, it could lead to slower development of new models, higher costs for computing resources and increased competition for access to capacity.
Specifically, the bill proposes to place a moratorium on the construction and expansion of data centers until comprehensive rules to regulate artificial intelligence and related technologies are passed in Congress. This pause, according to the authors, would give policymakers and regulators time to discuss and implement protections related to worker rights, consumer protection and environmental regulations.
Arguments of the parties
Proponents of the initiative emphasize several key risks. Among them are the rapid growth in data center energy consumption, strain on infrastructure, and the potential impact on the labor market in an environment of accelerated automation. According to Senator Sanders, a moratorium would give time to “make sure that artificial intelligence is safe and effective and to prevent the worst consequences” of its uncontrolled proliferation.
Critics warn that such measures could undermine U.S. competitiveness in the global race for leadership in artificial intelligence. They believe that restrictions will only slow down the development of the industry domestically, while other regions will continue to build capacity and attract investment. The initiative has already been opposed by some fellow lawmakers, warning of the risk of losing the US position in the global market, emphasizes Axios.
An additional concern is that technology companies may start moving infrastructure to jurisdictions with more lenient regulation, leading to a redistribution of investment and technological capabilities.
Authorities in search of “control” over AI
The initiative is part of a broader trend: authorities in many countries and associations (in particular, the EU) are increasingly trying to find a balance between the development of technology and the need to control it.
Against the backdrop of rapidly growing interest in artificial intelligence, regulators are faced with the dilemma of how not to slow down innovation while minimizing risks to society, the economy and the environment.
In this context, the proposal to limit the construction of data centers looks like one of the most radical steps to date. Its introduction in the US Congress emphasizes that regulatory pressure on AI infrastructure is reaching the national level, where lawmakers’ decisions can directly affect the pace of the industry’s development.
If the initiative gains traction, the AI market could for the first time face direct infrastructure constraints driven by political, not just technological, factors. This will be a turning point for the industry, where further growth will depend not only on computing capabilities, but also on political decisions in Washington and other capitals.
