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Recently, SpaceX (Elon Musk’s company that owns xAI) entered the stock market. The other two major AI data center players, OpenAI and Anthropic, announced plans to follow soon. These Big Tech companies and their private equity and Wall Street backers are behind the explosion of data centers across the country. The race to build out AI infrastructure has turned into a modern day gold rush. Our report last year found that private equity firms have poured record amounts into the data center sector, snapping up billions of dollars’ worth of digital real estate. Private equity had spent nearly $200 billion to finance data center deals, with the vast majority of this spending hidden from public view. Since then, Wall Street has pushed even more data centers. The reality is the promise of economic prosperity from data centers rarely holds up. In addition to the environmental and economic harms caused to communities near proposed developments, speculation around the industry is creating a bubble and the threat of a looming financial crash. Things have gotten out of control. That’s why AFR is supporting the AI Data Center Moratorium Act of 2026.
If passed, the bill would put in place a national moratorium on all new AI data centers — hitting pause on these energy-intensive, water-guzzling facilities until Congress passes comprehensive legislation. A stop to this buildout can’t come soon enough given the severe impacts AI data centers have on our electricity bills, communities, and society. At least 100 communities have enacted freezes on data centers, and states are moving to do the same, but we need a national approach to give every community a fighting chance. There are more than 1,700 new data center projects proposed across the country — and even more are coming. We need a nationwide pause to the development of data centers until we can be sure that the necessary processes, regulations, and guardrails to put public benefits over corporate profits. Data centers raise electricity prices, emit dangerous pollutants, stress water systems, and fail to generate many permanent jobs, yet they often come with enormous tax incentives for Big Tech and Wall Street developers. Families simply can't afford higher electricity and water bills — especially as essential expenses like healthcare premiums, gas prices, and housing continue to climb. Introducing the bill was an important step — now we have to get it passed. That means telling every member of Congress to join this effort and cosponsor the bill! The AI industry is now growing desperate as surging, broad-based grassroots opposition against them is spreading across the country. At least 75 projects worth about $130 billion have been blocked this year alone. Thank you! -Patrick Patrick Woodall (he/his)
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