MODEL LAW
AI DATA CENTER MORATORIUM ACT
An act to suspend the construction and expansion of high-density computing facilities pending environmental and infrastructural impact assessments.
PREAMBLE: Recognizing that the growth of artificial intelligence requires significant computational power; acknowledging that the infrastructure required to sustain this power impacts local electrical grids, municipal water supplies, and the natural environment; and affirming the need to balance utility affordability and resource management with the expansion of data processing capabilities, this Act establishes a moratorium on the development of AI data centers.
CHAPTER I: GENERAL PROVISIONS
Art. 1. Purpose and Scope.
1. This Act establishes an immediate, temporary moratorium on the permitting, construction, and expansion of AI Data Centers within the jurisdiction.
2. The purpose of this moratorium is to protect public infrastructure, stabilize utility rates, and prevent environmental degradation until comprehensive regulatory frameworks are established.
Art. 2. Definitions.
1. "AI Data Center" means any commercial computing facility, or distinct portion thereof, that utilizes high-density computing equipment primarily for the training or operation of artificial intelligence models, characterized by a power density exceeding 20 kilowatts (kW) per rack, a spatial power density exceeding 250 watts per square foot of computing floor space, or a total facility power demand exceeding 10 megawatts (MW).
2. "Competent Authority" means the state environmental regulatory agency acting as the single lead agency, which shall maintain superseding jurisdictional authority over regional or municipal agencies responsible for energy regulation and zoning enforcement to prevent conflicting enforcement actions.
CHAPTER II: THE MORATORIUM
Art. 3. Suspension of Approvals.
1. The Competent Authority shall immediately cease the issuance of all zoning permits, building permits, environmental clearances, and grid interconnection agreements for any proposed AI Data Center.
2. Any pending applications for the aforementioned permits or agreements are hereby frozen and shall not be processed for the duration of the moratorium.
Art. 4. Halt on Active Construction and Expansion.
1. All active construction of new AI Data Centers, and the physical expansion of existing data centers to accommodate high-density AI computing, shall cease within seven (7) days of the enactment of this Act. All ongoing construction is explicitly halted regardless of status, and no exemptions shall be granted for projects that have already broken ground or secured final building permits prior to enactment.
2. Existing data centers may continue standard operations but are strictly prohibited from upgrading infrastructure to cross the power density thresholds defined in Article 2.
Art. 5. Duration of the Moratorium.
1. The moratorium shall remain in effect for a minimum period of twenty-four (24) months from the date of enactment.
2. The moratorium may only be lifted after the legislative body enacts a comprehensive regulatory framework governing the energy and water usage of high-density computing facilities, as outlined in Chapter III.
CHAPTER III: CONDITIONS FOR FUTURE AUTHORIZATION
Art. 6. Mandatory Impact Assessments.
1. Prior to the lifting of the moratorium, the Competent Authority must develop standardized protocols for mandatory, independent Environmental and Infrastructural Impact Assessments (EIIA) for all future AI Data Centers.
2. The EIIA must explicitly quantify projected grid strain, peak water consumption for cooling, and the total lifecycle carbon footprint of the facility.
Art. 7. Community Protection Guarantee.
1. Future regulatory frameworks must include a strict prohibition on passing the costs of electrical grid upgrades required by AI Data Centers onto residential utility ratepayers.
2. Facilities must be required to utilize closed-loop water cooling systems or alternative non-consumptive cooling technologies to prevent the depletion of municipal water supplies.
CHAPTER IV: ENFORCEMENT AND SANCTIONS
Art. 8. Administrative Penalties.
1. Any corporation, developer, or entity that initiates or continues construction or expansion of an AI Data Center in violation of this Act shall be subject to an administrative fine of no less than $100,000 per day of violation.
2. Corporate officers and directors of the violating entity shall be held personally liable for administrative fines if they knowingly authorized or failed to halt the violation.
Art. 9. Utility Disconnection and Injunctions.
1. The Competent Authority is empowered to issue binding orders to utility providers to sever electrical and water services to any facility operating or constructing in violation of this Act, provided that the violating entity is issued a written notice of violation and granted a forty-eight (48) hour period to request an expedited administrative hearing prior to disconnection.
2. The Competent Authority shall seek immediate injunctive relief in the appropriate courts to halt unauthorized construction, with all legal costs and remediation expenses borne by the violating entity.
EXPLANATORY MEMORANDUM
Context and Intent of the AI Data Center Moratorium Act
The commercialization of Artificial Intelligence has led to increased resource utilization by technology developers. AI models require specialized, high-density data centers that consume more electricity and water than traditional cloud computing facilities. This surge in demand presents challenges to local power grids and municipal water supplies, and raises concerns regarding the allocation of infrastructure upgrade costs among residential ratepayers.

This Act establishes a moratorium on the construction and expansion of AI data centers to ensure operational costs are appropriately managed. By pausing development for a minimum of 24 months, the Act provides lawmakers and regulators the necessary time to draft comprehensive standards. The law ensures that future development will be governed by independent impact assessments, water cooling mandates, and protections against utility rate increases for citizens. The daily fines and utility disconnection provisions are designed to ensure compliance with these regulatory measures.