Bernie Sanders Wants a Data Center Moratorium. Here's What Congress Can Realistically Do

Sen. Bernie Sanders is demanding a national data center moratorium after Democrats won control of Congress. The Nasdaq fell 6.36% into correction territory Thursday on fears of a slower data center buildout.

Nvidia fell 9% as investors weighed the risk to data center spending. Still, a presidential veto could kill the bill, and Democrats are split over it.

Can a Data Center Moratorium Survive a Veto?

Sanders and Rep. Alexandria Ocasio-Cortez introduced the bill earlier this year. It would pause new US data center projects until Congress writes rules on electricity bills, environmental harm, and community approval.

Democratic control of Congress improves its odds. However, Republicans still hold the White House.

Democrats take control only when lawmakers are sworn in on Jan. 3.

Meanwhile, division inside the party is already visible.

“Even among Democrats, a blanket freeze is contested.”

Nadine Smith, president and CEO of the racial justice group Color of Change, as quoted by TechCrunch.

Will Local Bans Move Faster Than Congress?

Voters in Trenton, Ohio, backed a ban on data centers above 25 megawatts, with 80% support in unofficial results.

Texas Gov.-elect Gina Hinojosa, who unseated Gov. Greg Abbott, has vowed to issue a statewide data center moratorium, Reuters reported.

TechCrunch reported that Goldman Sachs expects data center construction delays in states such as Georgia and Texas.

Separately, a narrower federal option exists. Sen. Martin Heinrich of New Mexico proposed the GRID Savings Act, which would stop grid costs from landing on communities.

Meanwhile, OpenAI pledged Thursday to pay the full power and infrastructure bill at sites it owns and runs.

The chip stock sell-off sent Broadcom down 10% and the Nasdaq more than 10% below last month’s record, CNBC reported.

The iShares Semiconductor exchange-traded fund (ETF) fell more than 12%, its worst day since March 2020.

South Korean chipmaker SK Hynix fell 7.74% in Seoul on Thursday as traders weighed tighter AI rules.

The bigger test for AI spending is whether limits come from Congress or from local governments already passing bans.