Pallone, top Energy Democrat, backs AI data center moratorium

Energy & Environment Pallone, top Energy Democrat, backs AI data center moratorium Comments: by Rachel Frazin - 06/24/26 4:25 PM ET Comments: Link copied by Rachel Frazin - 06/24/26 4:25 PM ET Comments: Link copied

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The top Democrat on the House Energy and Commerce Committee is backing a moratorium on AI data centers — a show of support from a mainstream, influential Democrat for a policy that has thus far been endorsed at the national level mainly by anti-establishment figures.

During a committee markup on Wednesday, Rep. Frank Pallone (D-N.J.) said, “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.”

In his remarks, Pallone cited both the centers’ impacts on electricity prices and the environment, including their water use, air pollution and use of chemicals including “forever chemicals.”

“Promises by the data center industry and Big Tech that these facilities will bring down costs have fallen flat,” he said. “Instead, the grid operator for the mid-Atlantic region estimated that ratepayers — including families in New Jersey — paid over $9 billion last year for the electricity that data centers and Big Tech need to fuel their AI demands.”

“There are reports of data centers being approved without any analysis of their water use, even in water stressed communities,” he added. “And the EPA [Environmental Protection Agency] is even trying to fast track the approval of chemicals — like new PFAS — for use in data centers, putting the health of Americans across the nation at risk.”

While progressive lawmakers such as Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) have previously endorsed a similar halt on new data center construction, Pallone appears to be going further than mainstream Democratic leaders.

Earlier this year, Senate Majority Leader Chuck Schumer (D-N.Y.) said that if Democrats retake the Senate, they will push for “strong, enforceable consumer protections” on data centers.

On the Republican side, Rep. Nancy Mace has also called for a one-year data center moratorium in her state of South Carolina.

Pallone’s remarks follow big wins for progressives in New York on Tuesday night. His support for the moratorium could be an indicator of where House Democrats’ may try to push data center policy if they retake control of Congress.

President Trump, however, is highly unlikely to support a pause on data center construction.