Sanders’ Data Center Moratorium Threatens Innovation and Jobs

Sen. Bernie Sanders’s (I-VT) recent call for a nationwide moratorium on data center construction may be framed as a pause for democracy’s sake, but in practice, it would lead to very different consequences. A federally mandated halt on infrastructure and economic progress would weaken American innovation, undercut local decision-making, kill construction jobs, and hand a strategic advantage to global competitors.

No one disputes that artificial intelligence is advancing rapidly, or that its implications deserve serious public debate. There is a legitimate role for policymakers, regulators, and communities to play in shaping how AI is developed and deployed. But freezing the construction of data centers, the physical backbone of the digital economy and a growing, vital share of construction spending, is not a democratic caution. It is insanity.

Data centers are not abstract symbols of technological excess. They are physical facilities housing servers, storage, and networks that collect, store, process, and distribute massive amounts of data. Data centers enable everything from streaming videos to online banking. Data centers are crucial infrastructure projects approved by local governments, built by American workers. A federal moratorium would override those local decisions, substituting a one-size-fits-all mandate for the judgment of states, cities, and citizens. That is not democracy catching up — it is Washington shutting the door on free choice.

The stakes are high. The United States has made clear that leadership in artificial intelligence, high-performance computing, and advanced manufacturing is a national priority. These ambitions depend on secure, domestic computing capacity, which cannot exist without continued investment in data centers. Halting their construction would not slow global AI development; it would simply shift investment, talent, and innovation elsewhere. China will not pause its infrastructure buildout while America debates. Nor will other competitors be eager to fill the vacuum created by U.S. retreat. A moratorium would weaken national security, slow scientific discovery, and make the U.S. more dependent on foreign-controlled technology.

At the same time, the construction industry is facing real economic pressure. New data from Associated Builders and Contractors shows that construction backlog has fallen to its lowest level since early 2024, with small contractors experiencing the steepest declines. Since the start of 2024, data center spending has grown by $16 billion, offsetting a dramatic $55 billion decline across all other private nonresidential segments. This growth is also benefiting a broad cross-section of the industry, with about 1 in 7 ABC contractor members currently contracted for data center work, a sharp contrast to the highly geographically concentrated manufacturing construction boom of 2022-2024. Simply put, Sen. Sanders’s plan to end data center construction would not just have ripple effects far beyond Silicon Valley; it would take jobs away from the thousands of ABC members and the skilled construction workers they employ across the country.

None of this means communities should be forced to accept projects they do not want or cannot support. Legitimate concerns about energy costs, land use, and environmental effects must be addressed transparently and responsibly. Property rights must be respected. Infrastructure should be built through consent, compensation, and collaboration—not coercion. That is why state and local governments are best positioned to weigh the trade-offs, negotiate community benefits, and determine what works for their residents. Our federal system was designed to allow exactly this kind of experimentation and accountability. A national moratorium would eliminate that flexibility entirely.

History offers a cautionary lesson. America did not become an economic powerhouse by freezing innovation. We debated, built consensus, and adapted while continuing to build. Proceeding thoughtfully is prudent. Halting progress altogether is reckless.

If the United States wants to lead in AI, strengthen its economy, and preserve democratic decision-making, it must reject blanket bans and embrace balanced, locally driven solutions — not put American innovation on hold. America’s builders are ready to do their part. The question is whether Washington will let them.

Michael Bellaman is the president and CEO of Associated Builders and Contractors. Celebrating its 75th anniversary in 2025, Associated Builders and Contractors is a national construction industry trade association established in 1950 with 67 chapters and more than 23,000 members. Founded on the merit shop philosophy, ABC helps members develop people, win work, and deliver that work safely, ethically, and profitably for the betterment of the communities in which ABC and its members work.

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