Full Breakdown
Pallone Calls for Nationwide AI Data Center Moratorium
6/25/2026, 1:47:30 PM
Core Event
During a Wednesday Energy Subcommittee markup, Rep. Frank Pallone (D-NJ), ranking member of the House Energy and Commerce Committee, called for a national moratorium on new AI data centers, citing threats to air, water and electricity bills.
Background & Data
AI-driven data centers have doubled electricity use from 2017-2023, prompting restraint calls from Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez. Senate Majority Leader Chuck Schumer says a Democratic Senate would push consumer-protection measures; Rep. Nancy Mace (R-SC) backs a one-year state moratorium. Berkeley Lab projects data centers could exceed 15 % of U.S. electricity by 2030. A grid operator says New Jersey ratepayers paid over $9 billion for data-center power in 2023. NERC issued its most severe warning on data-center grid risks.
Official Statements
Pallone called existing data-center bills a useful first step but insufficient, noting towns in his district have halted projects. He praised recent FERC rulemaking, saying implementation may take months to years. Schumer signaled a Democratic Senate would pursue enforceable consumer-protection measures; Mace supports a one-year moratorium in South Carolina.
Opposition
Republican committee members opened an investigation linking Chinese influence to opposition, a claim Pallone dismissed. The Trump administration offered a voluntary “Ratepayer Protection Pledge” to Big Tech without enforcement, and EPA’s fast-track PFAS approvals for data centers have drawn environmental criticism.
Gaps
The $9 billion cost figure is based on a regional grid operator’s estimate; the sources do not cite independent verification. EPA’s fast-track PFAS approvals are mentioned, but the sources provide no public documentation of the process. Reports of data-center approvals lacking water-use analysis are noted, yet no quantitative consumption data for water-stressed communities is provided.
Quotes
- “I am in favor of a national AI data center moratorium until we can find a way to ensure they don’t harm our nation’s air, water and power bills.” — Frank Pallone, Ranking Member, House Energy and Commerce Committee
- “Americans across the country have expressed concern and opposition to the rampant construction of AI data centers, and Congress should take this political groundswell seriously with a data center moratorium.” — Frank Pallone
- “Energy consumption from data centers doubled between 2017 and 2023 – that’s a six-year period, and that’s just the beginning, if Big Tech gets its way.” — Frank Pallone
- “The North American Electric Reliability Corporation put out its most severe warning last month, saying that data centers cause significant risks to the reliability of our power grid.” — Frank Pallone
Next Steps
Pallone thanked Committee Chairs Jim Guthrie and Roger Latta for constructive bipartisan work toward a framework. If Democrats regain Senate control, Schumer’s consumer-protection agenda may become legislation. FERC’s pending rulemaking may take months to years before it takes effect, setting a regulatory baseline for future approvals.
