April 1, 2026
Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez recently introduced legislation halting construction of data centers. They argue it is necessary to put safeguards in place before artificial intelligence advances any further.
However, the AI Data Center Moratorium Act is a direct threat to the U.S. economy and America’s ability to compete in artificial intelligence.
Stopping construction of data centers would not only set America back in developing AI models, but it would have a major negative impact on the technology Americans rely on in their everyday lives. Data centers power a huge share of the modern internet, from government and health care systems to streaming services like Netflix and YouTube. Senator Sanders’ and Representative Ocasio Cortez’s approach would drive up the cost of cloud computing and internet infrastructure so high that it could increase the cost of services across the board.
Even if the moratorium were to only apply to data centers powering AI models, we would likely end up in a scenario where only the wealthiest can afford to access AI tools and the benefits they provide, leaving the vast majority of American consumers behind.
This moratorium would further hamper American innovation by kneecaping startups, who don’t have the capital to navigate onerous requirements and wouldn’t be able to pay the exorbitant costs for data processing if supplies were artificially constrained. Ironically, this ban would make Big Tech companies who can afford higher compute costs even more powerful while making it nearly impossible for small businesses and entrepreneurs to compete.
In a rare moment of unity, leaders on the Right and the Left condemned the proposed moratorium as bad policy. Senator Mark Warner, a Democrat from Virginia, called the idea behind the AI Data Center Moratorium Act “idiocy”. He warned a moratorium would enable our adversaries to move faster in the race to dominate AI. PCAST (President’s Council of Advisors on Science and Technology) co-chair David Sacks said the moratorium amounts to “stopping progress completely so China wins the AI race.” Both sides agree that halting the buildout of infrastructure powering AI weakens American leadership at home and abroad.
To address concerns over cost of living and job security, President Trump’s Ratepayer Protection Pledge plan provides a compelling blueprint. The plan requires “leading United States hyperscalers and AI companies to build, bring, or buy all of the energy needed for building and operating data centers” ensures the costs do not get passed down to the consumer, while incentivizing domestic energy production.
Data centers are not just infrastructure for AI, they are engines for blue-collar job growth. Electricians, construction workers, technicians, and project managers are all benefiting from this buildout. The result is more American jobs powering our economy and supporting families nationwide.
A report published by the Wall Street Journal underscores this reality, noting that construction workers on data center projects “often earn 25% to 30% more than they did before.” Marc Benner, an Oregon worker highlighted in the report, described supporting the buildout as “my American dream.” These are the kinds of opportunities this moratorium would take away.
If this proposal passes, it will mean fewer jobs and less money in Americans’ pockets.
The concerns the authors of this legislation raise around safety, jobs, and environmental impact deserve serious attention from policymakers. However, a sweeping freeze on the construction of data centers hurts technological progress, limits America’s ability to compete with China, and would have countless economic consequences.
We cannot slow down and become less competitive. This proposed moratorium would diminish our quality of life and threaten America’s national security.
There is a reason the Washington Post Editorial Board called it Bernie Sanders’ “dumbest idea.”
Jay Burstein is a fellow with Build American AI.
.png)
