Pallone Supports National AI Data Center Moratorium

WASHINGTON, D.C. - At today's House Energy and Commerce Committee subcommittee markup addressing the growing impact of AI data centers on America's electric grid, Ranking Member Frank Pallone, Jr. (NJ-06) warned that Congress must take far stronger action to address the rapid expansion of data centers.

"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," Pallone said.

Pallone noted that data center electricity consumption doubled between 2017 and 2023 and could account for more than 15 percent of all U.S. electricity demand by 2030. He warned that the growth of AI infrastructure is already driving up utility bills for consumers and placing unprecedented strain on the nation's power grid.

"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. "…Democrats have been clear: Families around the country should not see their power bills rise by a single cent because of data centers."

The markup comes as communities across New Jersey continue to push back against proposed data center development. 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.

While supporting the bills under consideration today, which limit data center impacts, Pallone argued that Congress must move beyond incremental reforms.

"The Committee must take more aggressive action to ensure that data center developers are held accountable, and that consumers aren't left holding the bill," Pallone concluded.