Illustration for: Khanna to Push 'Data Center Bill of Rights'

Khanna to Push 'Data Center Bill of Rights'

Rep. Ro Khanna will introduce a 'Data Center Bill of Rights' letting communities block data centers within 2,500 feet of homes and schools, after Q1 2026 saw roughly $130B in data center projects blocked or delayed nationwide.

By the Numbers

2,500 feet
Buffer distance
~$130B, 75 projects
Q1 blocked/delayed
Rep. Ro Khanna (D-CA)
Sponsor
TC
By the Markets Desk
Edited by Trace Cohen · Early-stage VC & angel · Founder, New York Venture Partners
1 min read
ShareXLinkedInEmail

THE RUNDOWN

1

Data Center Watch counted roughly $130 billion and 75 data center projects blocked or delayed in the first quarter of 2026 alone -- local opposition is already repricing the buildout with no federal statute on the books.

2

A 2,500-foot buffer from homes, schools, childcare facilities, hospitals and nursing homes is a siting constraint first, and it bites hardest in exactly the dense areas where developers want to put capacity.

3

The resolution is unlikely to pass a divided Congress, but its real function is as a template local and state officials can copy immediately -- New York and several other states already have moratoriums in place.

4

Khanna is widely expected to run for president in 2028 and named Pennsylvania as where data center opposition dominated his feedback, which moves AI infrastructure siting from a county zoning fight into a national campaign issue.

TC

The VC Read · Trace's Take

Trace Cohen

$130B in blocked or delayed projects in a single quarter is the number that should be in every data-center-adjacent LP deck, not the bill itself -- Khanna's resolution won't pass a divided Congress, but it's a template state legislators can copy immediately. Any portfolio company with a data center in its infrastructure roadmap needs a community-engagement plan now, not after local opposition shows up at a zoning hearing.

Analysis

Rep. Ro Khanna plans to introduce a resolution he's calling a "data center bill of rights," aimed at giving local communities more formal power to reject or restrict AI data center construction, according to CNBC. The proposal would let communities bar data centers within 2,500 feet of homes, schools, childcare facilities, hospitals or nursing homes, guarantee a transparent local approval process communities can use to reject any specific project, and preserve states' ability to impose statewide pauses on new data centers until ratepayer and water-supply protections are in place.

Khanna, who is widely expected to run for president in 2028, said the goal is giving local communities "the right to say no." He pointed to Pennsylvania specifically, where he said opposition to data center construction was the dominant piece of feedback he heard on a recent trip. Data Center Watch, a research firm tracking the issue, counted roughly $130 billion in data center projects blocked or delayed in the first quarter of 2026 alone, and several states, including New York, already have moratoriums in place.

The resolution is unlikely to pass as written in a divided Congress, but it formalizes a fight already happening state by state and county by county -- the real leverage here may be less the federal bill itself than the template it hands to local officials already fielding this exact fight.

ShareXLinkedInEmail

Key Sources

3 sources
SourceIBTimes
SupportCNBC

Reported by CNBC · First reported by IBTimes · Analysis by Value Add Pulse.

← Back to Pulse

THE WIRE in your inbox— Tech, startup & VC news with Trace's take. Free, no spam.