Rep. Frank Pallone called for a national AI data center construction moratorium at the House Energy Subcommittee markup.
Energy Subcommittee markup of eight bills proceeded under the shadow of mounting data center concerns. While most proposed legislation attempts to minimize the impact of data centers on the nation's power grid, the measures fall short of addressing the underlying crisis. Energy consumption from data centers doubled between 2017 and 2023—a six-year span marking only the beginning if major technology companies proceed unchecked. A recent Berkeley Lab report estimates that data centers could account for over 15 percent of total U.S. electricity consumption by 2030, just four years away. The North American Electric Reliability Corporation issued its most severe warning last month, identifying data centers as a significant threat to power grid reliability.
The financial burden on American households is substantial and growing. Electricity prices nationwide stand 18 percent higher than at President Trump's inauguration, contradicting industry promises that data center facilities would reduce costs. The grid operator serving the mid-Atlantic region calculated that ratepayers, including families in New Jersey, paid over $9 billion last year for electricity consumed by data centers and Big Tech's artificial intelligence operations.
The environmental consequences extend beyond energy consumption. Data centers operating on diesel generators intensify air pollution, and the Trump Administration has moved to undermine Clean Air Act protections. Reports indicate approval of data centers without adequate water-use analysis, even in water-stressed communities. Residents near facilities report chronic noise and light pollution. The Environmental Protection Agency is expediting approval of chemicals, including new PFAS compounds, for use in data centers—a decision that poses health risks across the nation.
A national moratorium on AI data center construction is necessary until safeguards can prevent harm to air quality, water resources, and electricity rates. Several municipalities have already acted: Asbury Park, Red Bank, Old Bridge, and Sayreville have implemented local moratoria, while New Brunswick halted a data center project following community opposition.
President Trump, recognizing public resistance, sought to address the issue through a voluntary "Ratepayer Protection Pledge" with no enforcement mechanism—an insufficient response as families face skyrocketing bills. The Federal Energy Regulatory Commission's recent action to establish regulatory rules holds promise but will require months or years to take effect. Immediate Congressional action is needed. Republican Committee members have attributed public opposition to Chinese influence, a claim disconnected from constituent concerns expressed in New Jersey and across the country. These are authentic worries from real people, not coordinated foreign disinformation.
The Committee must pursue more aggressive measures to hold data center developers accountable and protect consumers from bearing the financial burden of this unprecedented buildout.