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Congress Proposes Laws to Shield Communities From Rapid AI Data-Center Buildout

Broad public worry over power, water use and local disruption is pushing lawmakers to file protection measures and moratorium proposals in Washington.

An aerial view of an Amazon Web Services Data Center known as US East 1 in Ashburn, Virginia, U.S., October 20, 2025. REUTERS/Jonathan Ernst/File Photo
Illustration: Sarah Grillo/Axios
The exposed lake bed of the Great Salt Lake is seen on May 15 from the site where the Stratos Project, a proposed data center, will be built in Utah’s Box Elder County. Supported by celebrity investor Kevin O'Leary, the proposal has met strong opposition from scientists, environmental groups and citizens who fear it could have a potentially devastating impact on wildlife and the water level of the lake.

Overview

  • The Reuters/Ipsos poll published Thursday found just 33% of Americans approve of rapid data-center construction, 57% would oppose one in their community, and 77% fear AI will raise electricity costs.
  • Rep. Rob Bresnahan introduced the Local Control Protection Act to limit companies from suing towns that reject data centers and to require legally binding community benefit agreements tied to federal tax incentives.
  • Sen. Bernie Sanders filed a bill seeking a nationwide moratorium on new data centers until Congress enacts clear AI safeguards, and more than a dozen related bills have been filed in the past three months.
  • Local fights have produced high-profile actions such as a one-year Seattle ban, a 350,000-signature petition against a proposed site near the Nashville Zoo, and about fourteen states considering temporary pauses.
  • Analysts say sweeping federal limits face long odds as hundreds of centers operate and roughly 1,062 projects are planned, while communities press concerns about higher utility bills, heavy water use, few permanent jobs and opaque developer deals.