US Senate candidate Sage calls for nationwide moratorium on data centers

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December 18th, 2025 by Ric Hanson

(Radio Iowa) – Nathan Sage, one of the Democrats running for the U-S Senate, says it’s time for federal guidelines on the use of artificial intelligence — and a nationwide moratorium on construction of data centers. Sage says data centers use massive amounts of electricity and water. “MidAmerican came out and talked about rates going up 13% and we have 200,000 Iowans who are right now late on their utility bills,” Sage said, “and I think that the increased demand on our power grid is going to cause a lot of problems.”

Data centers house computer servers, data storage and security technology. Sage, the former executive director of the Knoxville Chamber of Commerce, says these massive facilities may generate a few thousand jobs in the construction phase, but once a data center opens, it often takes fewer than 100 employees to operate. Sage is also concerned that the proliferation of data centers is happening due to the expanded use of artificial intelligence.

“I think we’re just shooting ourselves in the foot in regards to that,” Sage says. Sage says it’s like the wild, wild west right now in cutting edge technology and congress needs to implement regulations on artificial intelligence to ensure it is not only safe, but it’s not just the ultra wealthy who benefit for its use.  “As representatives, we should be taking our time to understand the issue and understand how to keep the people safe instead of just jumping in and allowing billionaires to continue to control everything and continue to gain profit,” Sage said.

The price of doing business in Iowa — including low construction costs and tax incentives — has made the state an attractive spot for data centers. Sage says he’s concerned that tech companies are buying prime farmland. “To be blunt, I believe a lot of these billionaires and corporations and these people who are multi-billionaires look at Iowa, look at the Midwest again like a lot of people do, as a fly over state,” Sage said.

It’s unclear how many data centers are currently operating in the state. A company in Demark that monitors data centers worldwide suggests there are over 100 existing or proposed data centers in Iowa. However, according to the Iowa Economic Development Authority 27 data centers are currently operating or under construction in Iowa. The U-S Department of Energy projects data centers will use up to 12 percent of all electricity generated in the U.S.