US Data Center Construction Moratorium Explained

US Data Center Construction Moratorium Explained

A proposal by Bernie Sanders and Alexandria Ocasio-Cortez to introduce a temporary moratorium on new data center construction in the United States could significantly affect architecture and engineering firms involved in the rapidly growing data center sector.

The proposed legislation aims to pause new projects while federal authorities establish regulations to address environmental impacts and consumer protection concerns related to artificial intelligence infrastructure.

Why lawmakers want a temporary pause

According to Bernie Sanders and Alexandria Ocasio-Cortez, the rapid expansion of AI infrastructure—especially large-scale data centers—requires stronger federal oversight.

Lawmakers argue that more time is needed to develop national standards that address issues such as:

  • Energy consumption of AI data centers
  • Environmental and water resource impacts
  • Consumer protection related to AI technologies

The proposal would temporarily halt new construction approvals while federal guidelines are developed.

A rapidly growing industry

The debate comes at a time when the data center sector is experiencing massive investment growth. Research by McKinsey & Company estimates that $5.2 trillion could be spent globally by 2030 on land, materials, and site development for data center construction.

Much of this expansion is being driven by the growing demand for artificial intelligence computing infrastructure.

Architecture firms heavily involved in data center projects

If the proposed moratorium were implemented, it could affect several architecture and design firms that have built strong business lines around data center development.

Leading firms in this sector include:

  • Corgan
  • HDR
  • Gensler
  • Stantec
  • AECOM
  • HKS
  • Page
  • HED
  • Arcadis North America
  • DGA

Among them, Corgan is currently the highest-earning architecture firm in the data center sector, generating about $213 million in data center facility revenue in 2024.

Political and industry pushback expected

The proposal is also expected to face opposition from pro-technology groups and industry lobbyists. A political action committee called Leading The Future, which supports AI development, has reportedly allocated $100 million to advocate for continued expansion of AI infrastructure.

Industry groups argue that slowing data center construction could hinder technological innovation, economic growth, and the development of AI capabilities.

Potential impact on the architecture industry

For architecture and engineering firms, the policy debate highlights how closely their project pipelines are tied to emerging technology sectors.

A temporary pause in data center construction could:

However, even if a short-term moratorium were introduced, the long-term demand for data centers is expected to remain strong as AI, cloud computing, and digital services continue to expand globally.

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