Congress is catching on to the idea of data center moratoriums, all in the name of protecting ratepayers.
After the issue was raised in the Oklahoma legislature this year and following moves by several Oklahoma towns and cities to adopt moratoriums, a surprise awaited members of the U.S. House Energy and Commerce Committee.
Representative Frank Pallone, a Democrat from New Jersey who is considered the most powerful Congressional Democrat with jurisdiction over energy and environment issues issued his surprise statement Wednesday at the start of an Energy Subcommittee session to vote on more modest legislation that seeks to make sure ratepayers don’t foot the bill for data center expansion, according to Politico.
“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.
Pallone’s call made things more complicated for supporters of the Ratepayer Protection Act — or something like it — to become law anytime soon and positioned Pallone in alignment with progressives and environmental advocates seeking stricter oversight of data center development. He said the ratepayer protection act is a “useful first step” but “not nearly enough. We need action, not toothless promises from Big Tech.”
Oklahoma has its own version of protecting ratepayers— House Bill 2992, the Data Center Consumer Ratepayer Protection Act of 2026, that adds greater transparency requirements and community input for new developments.
Rep. Gabe Evans (R-Colo.), the main sponsor of the Ratepayer Protection Act, said, “Two things can be true: the AI phenomenon — that toothpaste is not going back in the tube. The only question is, do we lead on it or do we cede ground to the Chinese? The second thing is also true: These costs should not be borne by ratepayers, and people want to know how we’re going to pay for this.”
Pallone’s suggested effort already has some opposition from Energy and Commerce Chair Brett Guthrie, a Republican from Kentucky. A spokesperson for Guthrie said the moratorium idea was “not the answer” and instead, it risks “slowing innovation” in AI to compete with China.
