A push for consumer protection
Senator Josh Hawley wants a nationwide moratorium on data centers to prevent electricity rate increases. He listed this pause among five Senate Republican priorities for the six weeks before Democrats take control of the chamber. Hawley wrote on X, "Senate Republicans trying to figure out what to do in the next 6 weeks?" He wants a federal pause until Congress passes a "bill of rights giving taxpayers guarantees of no rate increases." This proposal arrives as the Senate voted 73-25 on Monday to advance debate on the Bipartisan American Affordability and Jobs Act. That bipartisan legislation, backed by President Donald Trump’s administration, speeds federal reviews for energy projects and requires data center operators to pay the additional grid costs their projects create. Hawley previously introduced the GRID Act in February with Democratic Senator Richard Blumenthal to make new data centers obtain electricity from their own sources.
Growing public and political opposition
Data center electricity demand could more than double in six years. Figures cited by Pew show U.S. data centers consumed 183 terawatt-hours of electricity in 2024, and that number could climb to 426 by 2030. I find Hawley’s lack of specific details regarding the duration or scope of his freeze disappointing. He has not presented legislation specifying which projects would stop. However, independent Senator Bernie Sanders and Democratic Representative Alexandria Ocasio-Cortez also support a national pause to address AI’s effects on workers, public safety, and the environment. A Pew Research Center analysis published Wednesday found that 60% of Americans are uncomfortable with a new data center in their area, and these figures included 54% of Republicans and 68% of Democrats. This public opposition follows the November 3 elections where voters backed local restrictions and measures requiring public approval before construction. Another survey found 58% of people dislike political leaders who support building data centers near them. Opponents worry about rising bills, water consumption and noise. BlackRock CEO Larry Fink warned last month that a construction moratorium could trigger a recession because so much investment now depends on AI infrastructure. While OpenAI promised to cover electricity and grid costs at future campuses, Hawley remains focused on stopping construction until he secures consumer protections.
