Sanders and AOC Push Bill to Halt AI Data Center Construction

Senators Bernie Sanders and Alexandria Ocasio-Cortez introduced legislation on March 25, 2026, that would impose a moratorium on new AI data center construction in the United States. The bill came the same day OpenAI announced it was shutting down its Sora video generation tool.

The proposal reflects growing congressional concern over the AI industry's massive energy consumption and resource use. The billions flowing into new data facilities, combined with the technology's impact on the labor market, has sparked political resistance from the left.

What the bill would do

A moratorium would halt approval of new AI data facilities until regulations are in place covering energy use, water consumption, and labor impact. Sanders and AOC point out that powerful AI models require enormous amounts of electricity and cooling water, resources drawn from local communities.

The bill has virtually no chance of passing the Senate, but sends a clear political signal. The same bloc also pushed in March 2026 for limits on military AI use following revelations about the Pentagon's use of Claude.

Industry response

The tech industry quickly dismissed the proposal. Microsoft, Google, and Meta all argue that data centers are critical national infrastructure. The US is investing hundreds of billions in AI capacity to avoid losing ground to China.

The FTC announced the same day that it had barred AI company "Air AI" from marketing business opportunities after it was accused of deceptive practices targeting entrepreneurs and small businesses.

What CIOs should know

For enterprises, this is most relevant as a political temperature gauge. Even if a moratorium is unlikely, it signals that AI regulation is approaching in the US in much the same way it has in the EU. Energy and sustainability reporting for AI use will likely become a requirement going forward.