Democrats plan AI crackdown after flipping Congress

Democrats plan to introduce a comprehensive wave of AI and data-center legislation after taking control of Congress in January, marking a sharp pivot from the Republican-led approach that favored rapid development without federal restrictions. The push responds to voter backlash over energy-intensive data centers and their strain on power grids. Key proposals include protecting ratepayers from electricity cost increases tied to data centers, mandating independent third-party safety audits of advanced AI models before deployment, and establishing legal standards for corporate liability when AI causes real-world harm. Senator Chuck Schumer and Representative Lori Trahan are leading specific efforts, while Representative Greg Casar has called for tech executives to testify under oath. President Donald Trump has repeatedly opposed mandatory federal AI constraints, stating he will work with states that "want to become RICH" by embracing the technology, raising veto risks. The November 5 Democratic midterm victory triggered a major tech stock selloff, wiping out trillions in market value as investors weighed compliance costs and slower product rollouts, hitting semiconductor leaders like Nvidia and Broadcom hardest.