Pallone Backs National Moratorium on AI Data Centers
Despite growing local opposition, no state has implemented a successful pause on data centers to date.
WASHINGTON, June 25, 2026 – Rep. Frank Pallone Jr., D-N.J., the top Democrat on the House Energy and Commerce Committee, called Wednesday for a national moratorium on AI data center development.
Speaking at a House E&C Committee subcommittee markup, Pallone warned that Congress must take far stronger action to address the rapid expansion of data centers.
“Americans across the county 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,” Pallone said in his opening statement.
Pallone pointed to local actions in Asbury Park, Red Bank, Old Bridge, Sayreville, and New Brunswick – all in his congressional district – where residents and local officials have sought to halt or ban the development of data centers.
“Towns in my district are way ahead of this Congress in seeking a moratorium. Asbury Park, Red Bank, Old Bridge and Sayreville all have taken this bold step. The City of New Brunswick put a stop to a data center plan after the community stood together to oppose the project. We need to follow in their footsteps here in Congress,” Pallone said.
His remarks came during a markup by the House Subcommittee on Energy, which considered a series of bills addressing the impact of data center growth. The markup included legislation to improve load forecasting, deploy advanced transmission technologies, protect ratepayers from data center related energy costs, speed generator interconnections, and strengthen pipeline safety oversight.
While supporting the bills under consideration, Pallone argued that Congress must move beyond incremental reforms.
“Democrats have been clear: Families around the country should not see their power bills rise by a single cent because of data centers,” Pallone said.
“This simply cannot continue. That is why 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,” he said.
The findings come as the White House has promoted its Ratepayer Protection Pledge, under which companies commit to covering the full costs of the energy and infrastructure required for their data centers “no matter what.” Seven major AI companies – Amazon, Oracle, Google, Meta, Microsoft, OpenAI, and xAI – have signed the pledge.
A recent survey found 75 percent of U.S. adults surveyed lack confidence that data center developers will cover costs associated with the infrastructure needed to support their facilities.
Fourteen states have considered data center moratoriums to date, seven of which have failed to be enacted. The New York legislature was the most recent to pass legislation on June 4 proposing a year-long pause on permits for large-scale data centers.
As of June 25, 2026, the bill is not shown on the official tracker as delivered to or signed by Governor Kathy Hochul, who has not announced a position on the legislation, but has said she will review it.
If signed, the act would take effect immediately and trigger a one-year moratorium. If vetoed, or, assuming delivery after adjournment, left unsigned for the applicable 30-day period, it would not become law.
In the meantime, localities are increasingly pursuing their own restrictions on data center development. A data center moratorium tracker maintained by investment firm Interconnected Capital tracked at least 122 proposed local moratoriums, with 97 currently active.
