Maine legislature poised to vote on bills to curb data center development

The Maine Legislature is set to vote on two pieces of legislation aimed at curtailing data center development within the state. The Taxation Committee approved a bill that would exclude data centers from specific tax incentives offered under the Business Equipment Tax Exemption Program and the Dirigo Business Incentives Programs. Committee co-chair Nicole Grohoski (D-Ellsworth) expressed concerns that current incentives were not designed with municipal impacts in mind, and that the state, rather than the company, often ends up bearing the cost of tax exemptions. A separate bill, LD 307, is also awaiting votes in both the House and Senate. This legislation proposes a moratorium, prohibiting any data centers with a load of 20 megawatts or more from being built until November 1, 2027. This proposal, backed by the Energy Committee, was introduced by Rep. Melanie Sachs (D-Freeport), who highlighted recent proposals for massive data centers in Sanford and Lewiston with little public notice. Sachs stated that the moratorium aims to protect Maine residents and the state's electric grid from potential adverse impacts, and would establish the Maine Data Center Coordination Council to evaluate related issues.