Khanna Unveils Data Center Bill of Rights Amid AI Power Struggle

As the nation grapples with the escalating demands of artificial intelligence, a new legislative push is emerging to address the burgeoning data center industry. Representative Ro Khanna, a Democrat from California, is championing a “data center bill of rights,” a legislative proposal designed to empower local communities in their oversight of these massive facilities, particularly as concerns mount over potential utility rate hikes.

Khanna, widely seen as a potential presidential contender in 2028, has stated that his resolution aims to grant local communities a crucial “right to say no” to data center developments. His recent travels across Pennsylvania revealed a significant public sentiment against the proliferation of these facilities. “The biggest feedback I heard was in opposition to these data centers across the state,” Khanna told CNBC. “We need a data center bill of rights where communities don’t have these data centers shoved down their throat, where they can stand up and say no and where they can make sure these aren’t going in farmland or residential communities.”

This proposed resolution, shared exclusively with CNBC, seeks to establish a framework of rights for local communities to veto data center construction. It arrives at a time when numerous legislative efforts are underway to temper the rapid expansion of data centers, driven by anxieties about their contribution to the already high cost of living and strain on local resources.

The provisions put forth by Khanna include empowering communities to prohibit data centers within a 2,500-foot radius of residential areas, educational institutions, healthcare facilities, and senior living centers. Furthermore, it advocates for a transparent community approval process for any proposed data center and seeks to preserve a state’s authority to implement temporary moratoriums on new data center construction until robust protections are enacted. These protections would aim to shield ratepayers from escalating electricity bills and prevent the depletion of local water supplies, critical considerations in an era of increasing climate-related challenges.

Several states, recognizing the growing concerns, have already taken action by implementing moratoriums on data center development. New York, for instance, has moved to pause new projects as it evaluates the environmental and economic impacts.

Beyond siting and community approval, Khanna’s bill would also safeguard the ability of local governments to regulate data center development without state preemption. It mandates that data centers utilize clean and reliable energy sources and adhere to stringent pollution limits. Crucially, it grants communities the power to demand that the construction and operation of these facilities do not lead to an increase in utility bills for residents.

The data center sector is undeniably facing a significant political moment across the United States. This increased scrutiny comes ahead of key elections, which will shape the future of policy and regulation. The massive energy and water consumption of these AI-powering facilities have become a focal point for voter concerns, particularly in the context of resource scarcity and environmental sustainability.

Opposition to data center expansion has already yielded electoral victories. In Michigan, Abdul El-Sayed, a Democratic Senate candidate who secured a significant primary win and received an endorsement from Khanna, has publicly supported state and local moratoriums on data centers until federal safeguards are established. This sentiment reflects a broader trend of voters prioritizing local control and environmental stewardship in the face of rapid technological development.

Khanna, representing the heart of Silicon Valley, believes that the hyperscale companies constructing these data centers are currently alienating the very communities they aim to serve. “The hyperscalers building these data centers are losing the country,” he remarked, underscoring the need for a more balanced approach that considers both technological advancement and community well-being.