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Lula da Silva: Brazil is back

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Brazil’s former president Lula da Silva (2003-2010) won the second round of presidential election that was held on October 30th, with 50.83 percent. Left-wing candidate Lula da Silva, who defeated incumbent right-wing leader Jair Bolsonaro, said he would restore his country to its rightful place in the international arena.

In Brazil, Latin America’s largest country with a population of over 212 million, about 156 million voters went to the polls on Sunday. 

Labour Party candidate Luiz Inácio Lula da Silva won 50.83 per cent of the vote, compared to 49.17 per cent for Liberal Party candidate and incumbent President Jair Bolsonaro, according to polling results published by the Superior Electoral Court (TSE).

Lula da Silva also surpassed Bolsonaro (43.20 percent) with 48.43 percent of the vote in the first round of the presidential election held on October 2nd.

Lula, who previously ruled Brazil for two terms, will take over the presidency from Bolsonaro on January 1st, 2023.

A single country, a single people…

Lula da Silva addressed to his supporters after winning the election “as of January 1st, 2023, I will govern for 215 million Brazilians, and not just for those who voted for me. There are not two Brazils. We are a single country, a single people, a great nation.”

Referring to the corruption charges and spending time in jail, Lula said “I think I am experiencing a resurgence in Brazilian politics. They tried to bury me alive, but now I’m here to rule the country. We are in a very difficult situation, but I am sure that with the help of the people, we will find a way out and restore peace.”

The most urgent task is to fight hunger

Emphasizing the fight against hunger, Lula said, “Our most urgent commitment is to end hunger again, we cannot accept it as normal for millions of men, women and children to go hungry or consume less protein than necessary in this country. We are the third largest food producer and the first in animal protein.”

“We are able to export all over the world and we have a duty to ensure that every Brazilian can have breakfast, lunch and dinner every day,” Lula reiterated. “This will once again be my government’s number one commitment,” he said.

Referring to the housing problem, Lula said, “We cannot accept that families are forced to sleep on the streets as normal, so we will continue the ‘my home is my life’ program and bring back the participation programs. Brazil can no longer live with this huge wall of inequality.”

Lula listed the demands of the people as follows: “The Brazilian people want to have a good job, a salary which is always above inflation, a quality public health and education system. They want books instead of guns. Brazilian people want to regain hope.”

Democracy message

Describing the election victory as a “victory of democracy”, Lula said, “This is the victory of an enormous democratic movement founded beyond political parties, personal interests, and ideologies for the victory of democracy,”

Lula shared the Brazilian flag on his Twitter account with a “Democracy” note.

Foreign policy remarks:

Prestige in the world

“Today, we are telling the world that Brazil is back and is too big to be relegated to the sad role of a pariah,” Lula said, “What I hear the most in my international trips is that the world misses that sovereign Brazil that spoke on equal terms with the richest and most powerful countries and, at the same time, contributed to the poorest countries.” 

Regional integration

“We are going to reconquer the credibility, predictability and stability of the country so that investors regain confidence in Brazil, so that they stop seeing our country as a source of immediate and predatory profit and become our allies in economic growth,” Lula said, recalling that in his previous terms, he had strengthened Mercosur and other regional integration organizations.

New standards with the US and EU

Talking about forming partnerships with US and EU on new standards, Lula da Silva added “We are not interested in trade agreements that condemn our country to enter the role of the seller of commodities and raw materials. We are going to reindustrialize and invest in the green economy.”

Lula also raised the issue of five permanent members of the UN, which undermine the balance between countries and prevented the enlargement of the General Assembly and the Security Council.

Fighting the climate crisis

“We are ready to re-engage in the fight against hunger in the world,” Lula da Silva stated and added that Brazil is ready to gain its leading role in the fight against the climate crisis by protecting all rainforests, especially the Amazon rainforest.

“We are open to international cooperation to preserve the Amazon, but always under Brazil’s leadership, without giving up our sovereignty,” Lula said, stressing that the growing deforestation and destruction in the Amazon rainforest will end.

Rise of the left in Latin America

The “pink tide” continues to rise in Latin America, which has defeated US-backed coups.

Following the elections in Peru, Bolivia, Argentina, Chile, Honduras, and Colombia, victory of yet another left-wing candidate in Brazilian elections too have raised the expectations on the strengthening of regional integration efforts. Lula da Silva’s emphasis on regional integration in his victory speech also points to this. Lula and Brazil are expected to boost cooperation among other governments, such as Argentina, Chile, Mexico, and Colombia, which share similar perspectives.

So much so that the leaders of Latin America, who strongly embraced Lula’s victory, shared enthusiastic congratulatory messages, and emphasized that this victory would strengthen the unification of Latin America.

Full support from Latin American leaders

Argentine President Alberto Fernandez shared his photo with Lula on his Twitter account, saying: “Congratulations, Lula da Silva! Your victory opens a new era for the history of Latin America. A time of hope and future that begins today. Here you have a partner to work and dream big for the good life of our peoples. After so many injustices that you experienced, the people of Brazil have elected you and democracy has triumphed.”

Venezuelan President Nicolas Maduro also tweeted: “We celebrate the victory of the Brazilian people, who this October 30th, elected Lula as their new President. Long live the peoples determined to be free, sovereign, and independent! Today in Brazil democracy triumphed. Congratulations Lula!”

Cuban President Miguel Diaz Canel said in his post, “They delayed your victory with heinous methods, but they couldn’t prevent you from winning with the vote of the people. Social justice will return.”

Mexican President Andres Manuel Lopez Obrador also shared his photo with Lula on his social media account, saying, “Lula won, blessed people of Brazil. There will be equality and humanism.”

Bolivia’s President Luis Arce Catacora, emphasizing integration in his Twitter account, said: “Congratulations, brother Lula, Brazil’s elected president! Your victory strengthens democracy and Latin American integration. We are sure that you will lead the Brazilian people along the path of peace, progress and social justice.”

Honduras President Xiomara Castro also shared her photo with Lula and posted “He faced the most conservative powers in history, and together with the people of Brazil he has defeated them. Latin America is reborn with hope in a true humanist process of change and liberation.”

Colombian President Gustavo Petro, who posted “Yay Lula” on his social media account, emphasized integration in Latin America in his following posts.

President of the Republic of Chile, Gabriel Boric retweeted Lula’s post and added “Lula. Happiness!”

Peru’s President Pedro Castillo congratulated Lula on his victory, saying: “Peru congratulates the president-elect of Brazil, the comrade Lula, worker, trade unionist, fighter. His victory is essential to strengthen the unity of Latin America and the social justice of the Great Homeland.”

With Lula taking over in Brazil, most of the Latin American countries will be governed by leftist governments. In addition, Brazil, Argentina, Chile, and Colombia together with Mexico constitute the 5 largest economies of the continent.

Relations with China expected to improve

Chinese President Xi Jinping congratulated the winner of the election, Lula da Silva, stressing that “deepening long-term friendship and mutually beneficial cooperation serves the fundamental interests of both countries.”

Xi said he highly values the development of China-Brazil relations, and he is ready to work with Lula to push forward China-Brazil comprehensive strategic partnership to a higher level to benefit to the two countries and their people.

Speaking to the Global Times, Chinese experts expect Lula’s return to significantly improve the atmosphere of cooperation between China and Brazil in terms of trade, investment, and global governance. It’s also emphasized that Lula’s return also means the strengthening of the autonomy of Latin American diplomacy.

“Lula’s return is likely to bring back a smoother China-Brazil relationship” Zhou Zhiwei, an expert on Latin American studies at the Chinese Academy of Social Sciences, told the Global Times on Monday. Zhou said this would allow both sides find more space and improve economic and trade cooperation, especially in agriculture and infrastructure construction.

“Brazil may also seek to participate in the Belt and Road Initiative (BRI) under Lula” Zhou said.

Lula and BRICS could be more compatible

Given that Lula was instrumental in the establishment and launch of the BRICS mechanism during his last stint in office, the Chinese expert believes that he will continue to be active and positive about BRICS.

According to the Chinese expert, cooperation between Lula and BRICS countries and communication on international hotspot issues and global affairs will be smoother and more stable than under Bolsonaro.

Regional integration and rejection of US hegemonism

Yang Jianmin, another Chinese Latin American expert, told the Global Times about the rising “pink tide” in the region.

Stating that the “pink tide” that continued with Lula’s election can be viewed as the opportunity to support regional integration, to reject US hegemony in the region, and to advocate independent diplomacy, Yang stressed that this is also China’s opportunity to develop a more profound bond with these countries.

He may also follow a more pragmatic policy…

Wang Youming, director of the Institute of Developing Countries at the China Institute of International Studies in Beijing, pointed out that unlike others, Lula could also pursue a more pragmatic policy.

“Lula’s emphasis on South-South cooperation and bonding with emerging powers does not mean that he will reject the US” Wang noted and added that it’s very likely that Lula will may have a more pragmatic style and less anti-American voice in his third term. According to Wang, instead, Lula may prioritize more practical tasks such as stabilizing the economy and mitigating the negative impact of COVID-19.

Brazil and China may explore new areas of cooperation

Tatiana Prazeres, director of trade and international relations for the Federation of Industries of the State of São Paulo, told the Atlantic Council on China’s policy, which Lula would likely to pursue, that despite negative rhetoric against China during the Bolsonaro administration, trade and investment between the two countries developed largely undisturbed, but the political unrest created by the anti-Chinese rhetoric prevented the deepening of bilateral relations in other areas such as science and technology.  Under Lula, Prazeres said, he expects Brazil and China to explore new areas of cooperation.

Lula may also be more enthusiastic about BRICS and the Belt Road, Prazeres said, adding that he may prefer to leverage Chinese investments and technologies to help reinvigorate Brazilian industry.

Biden may try to get closer through climate

Another expert spoken to the Atlantic Council is former secretary of foreign trade of Brazil, senior researcher Abrão Neto.

Lula’s election would lead to a significant change in Brazil’s environmental agenda, among other things, Abrão Neto said, adding that this would enable Brazil to improve its relationship with the United States.

Arguing that US-Brazil economic relations during the Lula era would continue to be driven by pragmatic mutual interests, the expert said: “A renewed stance from the Brazilian government on climate change and other environmental issues might offer an extended avenue for bilateral cooperation, with positive spillovers for the overall political and economic relationship between the United States and Brazil.”

Experts comment that Biden will try to get closer to Lula to lure Brazil into intense power rivalry.

It’s commonly expressed that Lula’s idea of strengthening the protection of the Amazon forests could be compatible with Biden’s climate policy.

US President Joe Biden was among the first world leaders to congratulate Lula.

On Sunday, Biden congratulated Lula on his victory following “free, fair and credible elections” and said he looked forward to continuing the cooperation with Brazil.

‘CIA’ plot against Lula

Lula da Silva, 77, who chaired Brazil for two terms in 2003-2010, was indicted for corruption in 2016. Lula, who argued that the case was political, applied to the court, but was sentenced to 9 years and 6 months in prison in 2017. He went to prison in 2018 and spent a year and a half in prison.

Lula was unable to run for president because he was in prison and could not run in the 2018 election. The lawsuits against Lula paved the way for Bolsonaro’s election.

In 2021, Lula’s convictions and cases were dismissed by the Supreme Court, which ruled that the judge responsible for these cases, Sergio Moro, was biased and political, paving the way for him to participate in the elections.

At the time, some messages about this investigation were leaked to the press by a Brazilian news site. The leaked messages revealed that federal judge Sergio Moro, who was conducting the investigation at the time, collaborated with prosecutors in ways that overstepped ethical lines and affect the decision on prison sentences.

It was understood that the corruption cases were conspiracy against Lula da Silva. The Brazilian federal prosecutor’s office announced that prosecutors conducting the investigation have been assigned to other units.

It was alleged that the CIA was behind the conspiracy against Lula at the time.

Lula, who followed policies to end the neoliberal impositions of the USA in Brazil and the region, IMF dependence, made Brazil the 10th largest economy in the world, improved relations with China, made the country one of the founders of BRICS, advocated regional integration, gained the love of the people by ensuring that approximately 30 million Brazilians got rid of poverty with the social policies he implemented.

The trial and imprisonment of Lula was described as a US-backed coup that brought the right to power.

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The system that needed Lindsey Graham

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Thomas Karat, behavior analyst

The senator died Saturday night of an aortic dissection, at seventy-one, in the middle of a campaign for a fifth term. His communications director cited the medical examiner’s preliminary finding: a rupture in the body’s largest artery, the consequence of arteriosclerotic cardiovascular disease. The tributes arrived within hours. Trump called him a true American patriot. Volodymyr Zelensky, who had met him twice in the preceding week, called him a friend who was there when it was needed most. Mark Rutte and Benjamin Netanyahu sent their own. Roger Wicker, chairman of the Armed Services Committee, said there were no words to describe Graham’s impact on the foreign and domestic policy of the United States.

There are words. The obituaries have chosen the wrong ones, and in doing so they have skipped the only question worth asking about a man like this. Not whether he was sincere in his convictions — he was, exhaustingly so — but how a senator whose reflexive answer to every foreign crisis was force spent twenty-three years being handed the committee seats, the airtime, and the ear of four presidents that let him act on it. Graham was not an aberration the system tolerated. He was a product the system manufactured, promoted, and kept in stock because he was useful.

Consider the shape of the career. In March 2003, as the bombs fell on Baghdad, Graham told the country that past disagreements should give way to a shared commitment to see the effort through. The war he blessed that day killed more than a quarter of a million Iraqi civilians by the most conservative direct-death counts, birthed the insurgency that became ISIS, and left the country a wreck. He drew no lesson from it. When Libya was broken open in 2011 and left to its warlords, he had backed the intervention. When Syria was pulled apart, he had wanted deeper involvement. Across two decades, the country would be devastated, and Graham’s response to each devastation was to locate the next one.

By February of this year the next one was Iran. On the twenty-sixth, under his own Senate letterhead, Graham published an essay that reads now like a confession left in plain sight. Iran, he wrote, was facing a Berlin Wall moment. The regime was at its weakest point since 1979, and his ultimate hope was that regime change would be achieved. He described the October 7 attacks, in his own phrasing — as a silver lining, because the Israeli campaign that followed had degraded Iran’s military. He praised Trump for pursuing, in his words, peace, not war, in the same paragraphs that celebrated a bombing campaign already under way. The strikes had a name: Operation Midnight Hammer. Graham called it the largest opportunity for peace and prosperity in the Middle East in over a thousand years.

He said the quiet part in Tel Aviv, to reporters, on February 16, less than two weeks before the strikes began. The United States was on the verge of eliminating the largest state sponsor of terrorism in the region. On Fox News, days into the war, he offered the ledger in its rawest form: when the regime goes down, he said, there would be a new Middle East, and the United States would make a tremendous amount of money. Venezuela and Iran held nearly a third of the world’s known oil reserves, he noted, and the point of the exercise was a partnership with those reserves. Regime change as a real-estate transaction. He had made the trip to Israel, the UAE, and Saudi Arabia the week before to reaffirm, he wrote, that all of it was attainable and would be extremely beneficial to the United States. Weeks earlier he had met with Mossad, telling reporters they would tell him things his own government would not.

None of this cost him anything. That is the part the eulogies cannot hold in view, because to hold it in view is to indict the institutions doing the eulogizing. A senator who spent a career being wrong about the consequences of American force — wrong about Iraq, wrong about Libya, wrong about what would follow the fall of every regime he wanted to fall — was never demoted for it. He was promoted. The record of his committee assignments tells the story in the driest possible language. For years he sat on the Armed Services Committee, from which he lectured the Senate that its love for the troops bought nothing, that only appropriations did, that a colleague worried about the budget was out of touch with the world. By the time of his death he chaired the Budget Committee and sat on Appropriations — the panels that write the numbers and bless the spending. The man who wanted every war was placed, again and again, on the committees that pay for them.

Follow the money and the shape sharpens further. Graham’s donors, across a career documented in Federal Election Commission filings, clustered where his positions pointed. The defense contractors — the makers of the aircraft, the missiles, the systems — routed money to his committees and his leadership PACs. The specific career totals sit behind a paywall that blocks automated verification, and so no single figure belongs in this account. But the pattern needs no exact number to be legible. A senator who votes for every weapons system, who calls insufficient defense spending an emergency, who treats the reduction of the military budget as a moral failure, is a senator worth funding for the people who build the weapons. The contributions were not a bribe. They did not need to be. They were an investment in a man who already believed, and who sat where belief could be converted into contracts.

The media completed the machine. Graham was a fixture of the Sunday shows and the cable green rooms for a reason that had nothing to do with wisdom and everything to do with format. He was quotable, available, and reliably hawkish, which made him the perfect guest for programs that reward certainty over accuracy and confrontation over reflection. The pipeline ran in both directions. The airtime made him a national figure, and being a national figure got him more airtime, and the whole apparatus rewarded the escalation it claimed only to be covering. When he called for bombing Iran regardless of Iran’s involvement in a given attack, and told Israel to finish the job, the remarks drew condemnation abroad and bookings at home. The market for a war hawk was deep, and he supplied it.

What made Graham durable was that his convictions never had to survive an election of ideas, only the tolerance of the institutions that housed them. He denounced Trump in 2015 as a race-baiting xenophobic bigot and a jackass, and by his second term was among the president’s most consistent defenders, having discovered that proximity to power mattered more than the content of the man wielding it. The pitch that helped start this year’s war was delivered, according to reporting on the strikes, over rounds of golf. Iran was a spoiler for everything Trump wanted, Graham told him; collapse the regime and it would be Berlin Wall stuff. The president was persuaded. The bombs fell. And when a reporter asked Graham what the plan was for the day after — the question that Iraq should have burned into every hawk in Washington — he answered that it was not his job to know. The future of Iran, he said, was for the Iranian people to determine. He had wanted the war. The consequences belonged to someone else.

That was always the arrangement. The wars were his to advocate and never his to own. He would appear on the morning shows to demand them, sit on the committees to fund them, take the money from the firms that profited from them, and when they curdled into the next disaster he would be on television again, demanding the next one, his authority somehow enhanced rather than diminished by the wreckage behind him. This is not the biography of an outlier. It is the biography of an incentive structure, wearing a man’s face.

He died with the seat already in motion. Within hours, before any burial, the reporting had turned to the scramble to replace him, to the governor who will name a temporary successor, to what his absence means for a Republican majority counting every vote. Trump told NBC he already had someone in mind. The machine that made Lindsey Graham did not pause to mourn him. It began, immediately, to fill the vacancy — because the position he occupied was never really about the man. It was about keeping the seat filled by someone who would say what he said. There is no shortage of applicants. That is the dread the eulogies are built to keep you from feeling. He is gone, and nothing that produced him has changed.

***

Thomas Karat has spent a career in multinational technology corporations and is a behavior analyst holding a Master’s in Science and Communication from Manchester Metropolitan University. His work focuses on the psychology of language in power dynamics, and his graduate thesis examined linguistic deception markers in high-stakes business negotiations. He hosts a YT podcast, SaltCubeAnalytics, and publishes at karat.substack.com

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Trump financial disclosures show millions invested in major defense contractors, analysis reveals

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US President Donald Trump’s financial disclosures released last week reveal that he has invested millions of dollars in approximately a dozen companies, including weapons manufacturers and defense contractors, according to a news analysis by Responsible Statecraft. The analysis shows that Trump, through investment firms representing him, acquired shares in defense sector companies valued at a total of between $9.7 million and $24.3 million.

The companies receiving investment included Palantir, Lockheed Martin, and General Dynamics.

According to the financial disclosures, the investment firms managing Trump’s assets invested between $1.6 million and $3.9 million in the data analytics and artificial intelligence company Palantir.

The analysis noted that Palantir developed the AI-powered Maven Smart System, which is utilized in US military operations in the war with Iran. The same analysis also claimed that the company contributed to the development of software named “Big Daddy,” which is used in Israeli military operations in Gaza.

Trump’s portfolio also includes shares in Boeing. The analysis stated that Boeing sold F-15 fighter jets valued at $8.6 billion to Israel less than three months before Trump and Israeli Prime Minister Benjamin Netanyahu initiated their joint war against Iran.

According to the financial disclosures, Trump also invested in GE Aerospace, Lockheed Martin, General Dynamics, and RTX, the manufacturer of Tomahawk missiles.

The analysis wrote that weapons produced by these companies were heavily used in the war with Iran, including Tomahawk missiles used in a US Air Force strike on a primary school in the Iranian city of Minab. The report stated that at least 168 children lost their lives in this attack.

According to Responsible Statecraft, the majority of these companies received new contracts from the Pentagon aimed at replenishing US missile stockpiles depleted during the war with Iran.

RTX signed a $373 million contract for 23 Standard Missile-3 IB interceptor missiles, while Lockheed Martin was reported to have secured a $35 billion contract intended to quadruple its production of the THAAD missile defense system.

The financial disclosures showed that Trump’s investment firms also invested in shares of Kratos Defense, Honeywell, Howmet Aerospace, L3Harris, and TransDigm.

Responsible Statecraft noted that the shares of these companies gained significant value within a year of Trump returning to office. According to the analysis, in 2025, Palantir shares rose by 135%, Kratos shares by 188%, GE Aerospace shares by 84%, and RTX shares by 61%.

In April, Trump posted on Truth Social, stating: “Palantir Technologies has proven to have very powerful capabilities and equipment on the battlefield. Ask our enemies!” Following the post, the company’s shares reportedly rose by approximately 3% within a few minutes.

Financial records showed that Trump generated more than $2 billion in income in 2025. Responsible Statecraft wrote that this amount is “unprecedented” for a sitting US president.

According to the report, the majority of this income was derived from investments linked to cryptocurrency companies such as World Liberty Financial and Binance. Trump reportedly earned hundreds of millions of dollars from “memecoins” launched through these companies, though these crypto assets later suffered sharp declines in value, resulting in losses for numerous investors.

The analysis stated that Tahnoun bin Zayed al-Nahyan, the UAE National Security Advisor and brother of the UAE President and Foreign Minister, invested $500 million in World Liberty Financial and $2 billion in Binance. Trump subsequently approved the export of advanced AI chips to the UAE, a decision that the analysis indicated created the impression of being linked to the crypto investments.

According to the analysis, Donald Trump Jr. is also connected to companies operating in the unmanned aerial vehicle and defense technology sectors. Trump Jr. is a major shareholder and advisory board member at Unusual Machines, which manufactures drone components, while his investment firm also holds stakes in Powerus and Vulcan Elements, both of which hold Pentagon contracts.

Trump Jr. serves on the board of Powerus, which markets drone systems used to intercept Iranian missiles to Gulf countries, and Eric Trump is reported to hold a financial interest in the same company.

Richard Painter, who served as the chief White House ethics lawyer during the George W. Bush administration, evaluated the situation, saying: “These countries are under great pressure to buy from the president’s sons. In this way, the president will do what they want.”

When asked last year about potential conflicts of interest arising from Trump’s business activities, White House Spokesperson Anna Kelly responded: “There are no conflicts of interest.” Trump also acknowledged the existence of conflicts of interest in an interview with the New York Times earlier this year, but argued they were not important, saying: “I realized that nobody cares.”

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US Democrats split over proposed data center moratoriums amid rising energy and climate concerns

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Democrats in the United States increasingly view the rapid expansion of data centers as a critical challenge, yet the party remains deeply divided over how to address the issue.

For many Democrats, the immense energy consumption of these facilities—which drives up household electricity bills and exacerbates climate change—makes some form of restriction an inevitable policy option. The growing public unpopularity of these centers raises the political stakes for Democrats, who are seeking solutions to protect their prospects in this year’s midterm elections on promises of lowering the cost of living.

Last month, Representative Frank Pallone Jr., the top Democrat on the House Energy and Commerce Committee, called for a moratorium on data center construction. However, senior party leadership has shown little enthusiasm for the proposal.

These internal divisions are also playing out at the state level, where at least two Democratic-controlled legislatures have passed data center moratoriums. One of those measures was vetoed, while the other is currently awaiting the governor’s signature.

Support for restricting data centers does not align strictly along traditional ideological lines. A faction of anti-establishment Republicans has backed such efforts, while other members of the Republican Party continue to debate how, or even if, to regulate the massive server farms powering the artificial intelligence boom.

In Congress, Democratic leaders have repeatedly argued that data centers must pay their fair share of rising energy costs.

Earlier this year, Senate Majority Leader Chuck Schumer stated that Democrats would push for “strong, enforceable consumer protections.”

Similarly, House Minority Leader Hakeem Jeffries expressed support for technological innovation while emphasizing, “We must ensure we are protecting the American consumer.”

However, neither leader has endorsed a specific legislative proposal to achieve these objectives. Requests for comment sent to the offices of Schumer and Jeffries went unanswered.

Jeffries also told Politico that halting data center development is “certainly not a position I am articulating at this time.”

In contrast, influential progressive figures, including Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez, argue that a total moratorium on data center construction is necessary.

In March, these lawmakers introduced legislation that would ban the construction of new data centers until Congress enacts a suite of AI safety measures, ranging from government audits of AI models to protections against mass layoffs.

Pallone voiced strong support for the concept last month during a subcommittee hearing on a separate data center bill, stating he favored “a national AI data center moratorium until we can figure out a way that this is not going to harm our nation’s air, water, and utility bills.”

Following his remarks, Pallone added: “The reality is that everything with these data centers is moving so quickly, and I am concerned about the impact on electricity consumers and the environment.”

The Data Center Coalition, an industry group backed by several major technology companies, argued that a national moratorium would deter investment in the US, damage the economy, and “send the wrong message to other industries.”

“A federal mandate to halt data center construction risks restricting access to cloud and digital services, undermines our global competitiveness, and would have significant consequences for Americans’ daily lives,” the group said in a statement in late June.

Maxwell Shulman, a policy research analyst at Beacon Policy Advisors, suggested that the primary force driving the recent push for moratoriums is a “general hostility toward AI and Big Tech.”

“People see many of these changes. They are worried about AI. They are worried about the economy and their jobs, and they feel there is very little they can do about it,” Shulman said. “They view data centers not only as the physical embodiment of AI, but also as one of the rare areas where they can actually have a say or fight back.”

Shulman added: “I think moratoriums are a blunt but effective tool to demonstrate this opposition or concern toward AI in general, not just data centers.”

Meanwhile, a narrower, bipartisan bill has been gaining momentum in Congress.

The Electricity Consumers Protection Act, led by Representative Kathy Castor, a Democrat, and Representative Gabe Evans, a Republican, would require state utility regulators to establish rules ensuring that ordinary Americans do not foot the bill for new power generation and transmission lines built to support high-load consumers like data centers.

The bill passed the House Energy and Commerce subcommittee in late June and is scheduled for consideration by the full committee.

Castor said Congress should begin by establishing regulatory safeguards, though she did not rule out supporting a construction halt in the future.

“People want guardrails. They do not want their electricity bills to go up, and they are worried about water,” Castor said last month.

When asked about her stance on a moratorium, Castor added: “If we reach a point where these guardrails are not put in place and companies simply ignore them, we will have to move to that stage.”

At the state level, Democratic governors have blocked or slowed legislative efforts to limit data center expansion. In Maine, the legislature passed a bill to ban new data center construction for 18 months, but Governor Janet Mills vetoed the measure because it did not exempt an ongoing $550 million project.

New York lawmakers passed a one-year data center moratorium in June, which is currently awaiting action from Governor Kathy Hochul. According to a report by Politico, Hochul is instead considering an executive order for a shorter, six-month halt.

Other Democratic governors have actively opposed data center moratoriums.

“Walking away from a technology that will continue to propagate is leaving the table,” Representative Abigail Spanberger, a Democrat from Virginia, told Politico this week.

In California, Democratic Governor Gavin Newsom vetoed a bill that would have required planned data centers to estimate their water usage.

As broad moratoriums encounter resistance, state-level Democratic leaders are turning to more targeted solutions, such as reassessing data center tax credits. In Illinois, Democratic Governor JB Pritzker announced in June that the state would suspend its tax incentives for data centers due to energy and water concerns.

Some Republicans have adopted a similar approach. In May, Ohio’s Republican Governor Mike DeWine instructed state officials to temporarily halt the evaluation of new tax exemption requests while lawmakers review data center growth in the state.

In Virginia, lawmakers kept data center tax incentives intact after prolonged budget debates that forced a special legislative session. Spanberger instead supported the introduction of a new tax on electricity consumption.

Meanwhile, in New Jersey, Governor Mikie Sherrill signed legislation this week that places data centers into a separate category of electricity consumers. The governor’s office stated that the measure will ensure data centers pay for their own energy use and the associated infrastructure.

Commenting on the dynamics facing state leaders, Shulman said: “There is a massive amount of investment potential and a lot of potential jobs at stake. And I really think these Democratic governors do not want to shoot their own states in the foot in the race to capture these jobs.”

Shulman added: “The goal for a Democratic governor is to send a policy signal strong enough to make voters feel they are taking a tough stance on AI, or addressing its potential negative consequences, while still trying to attract as much investment and as many jobs as possible.”

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