In an aerial view, a portion of the Meta Prometheus Campus, an AI data center and supercluster project, is seen on November 1, 2026 in New Albany, Ohio. (Photo by Jon Cherry/
WASHINGTON (TNND) —Republican Sen. Josh Hawley called on the GOP to pass a federal data center moratorium during the lame duck session over the next six weeks, becoming the first Republican senator to back the policy.
The artificial intelligence industry is facing a <a href="https://thenationaldesk.com/news/connect-to-congress/ai-industry-faces-new-political-reality-after-democratic-gains-in-midterms-data-centers-moratorium-regulations#” rel=”nofollow noopener” target=”_blank”>stricter regulatory environment after the midterms, which saw Democrats win majorities in Congress, flip statehouses across the country and win governorships after campaigning on <a href="https://thenationaldesk.com/news/americas-news-now/democrats-vow-ai-guardrails-as-they-prepare-to-take-control-of-congress#” rel=”nofollow noopener” target=”_blank”>reining in data center development.
While more Republicans have been supportive of creating rules for the AI industry, including conditions for building and protecting ratepayers from increases to their utility bills, Hawley is the first GOP senator in Congress to back a moratorium until Congress passes legislation guaranteeing no rate increases.
“Senate Republicans trying to figure out what to do in the next 6 weeks? Here you go: DEFUND Planned Parenthood, MORATORIUM on data centers, SUSPEND the gas tax, FUND rural hospitals, SAVE AMERICA ACT,” Hawley wrote on social media.
Hawley has previously introduced or supported bills that would restrict tax breaks for companies building in low-income communities, instituting reporting requirements for water and electricity use, and mandates for data centers to have their own power sources.
A federal pause on construction is not a widely held position in Washington despite mounting calls to regulate the industry and the impact their construction will have on local communities, but it may attract some Democratic support.
Rep. Alexandria Ocasio-Cortez, D-N.Y., and Sen. Bernie Sanders, I-Vt., have already introduced a bill to pause construction until federal safeguards are passed that has picked up 20 Democratic cosponsors. Rep. Frank Pallone, the top Democrat on the House and Energy Committee, has also called for a nationwide moratorium.
Despite some bipartisan appeal, a federal moratorium faces significant hurdles to become law even after Democrats take control of Congress in January.
A bill pausing data center construction is also likely to run into a presidential veto, as Trump has been a leading advocate for speeding up construction to help the U.S. stay ahead of China. In pushing Congress to pass a bipartisan energy permitting deal, he said “China will take any Data Center that we don’t want.”
Data centers became a political albatross for candidates who supported them in the midterms as many voters voiced concerns about higher energy bills, environmental impacts and noise generated by the facilities. Wide majorities of Americans on both sides of the aisle say that they do not want them built in their communities, including 88% of Democrats and Democratic leaners, 80% of independents and 61% of Republicans and Republican leaners, according to the Associated Press Voter Poll.
That has put pressure on all levels of government to figure out how to handle data centers, which also offer jobs during construction and tax revenue in a time when many states and local governments are seeking new revenues.
Data center moratoriums may become more prominent at the state and local levels, where governments have already put pauses on new projects or shifted rules to eliminate tax breaks for their developers and tighten restrictions for construction to get approval.
Several Democrats who promised more scrutiny are set to become governors in states that have been major hotspots for construction like Gina Hinajosa in Texas and Amy Acton in Ohio.
Concerns about new restrictions on data centers has led to a volatile week on Wall Street as investors weigh whether how a slowdown in construction will impact the industry’s expansion at a time where investors were already beginning to question how quickly the massive investments will generate returns.
The political backlash has also prompted more efforts in Washington to find ways to soothe concerns about higher energy costs and environmental impacts.
Trump has supported narrower restrictions on data center construction focused on preventing higher utility costs being passed onto consumers. Last month, he said the administration would require companies that build data centers to provide their own electricity and suggested they pay a dividend to communities, though it’s unclear how it would be enforced.
The permitting bill includes provisions that would require electric utilities to charge data centers more for transmission service and use those costs to reduce prices for other consumers. An analysis by Grid Strategies estimates the policy would lead to an additional $35 billion being collected from data centers over what they would pay under current policy.
In response to mounting public backlash, the AI industry has responded with pledges to minimize their environmental impact and pay for the additional demand its facilities place on the grid, though many of those commitments are voluntary so far. Several of the largest AI developers have promised investments into the communities they build in beyond the construction and asked policymakers to create clear guidelines.
Most recently, OpenAI published a framework promising to pay its way for infrastructure upgrades and electricity for its data centers and asked policymakers to codify those commitments into law.
“Lawmakers should establish rules to advance responsible investment, protect residents, and ensure that the benefits of AI infrastructure are broadly shared,” the company wrote in a blog post.
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