Maine lawmakers to consider data center moratorium

Maine state lawmakers are nearing the end of their legislative session and will soon debate two bills impacting data center development. Representative Melanie Sachs (D-Freeport) has sponsored LD 307, which proposes a statewide moratorium on new data center construction until November 2027. This pause would allow a task force to thoroughly study the potential risks and benefits of such developments, particularly concerning their environmental, community, and electricity grid impacts. Sachs noted that other states are now attempting to roll back incentives previously offered to data centers. Separately, Senator Nicole Grohoski (D-Ellsworth) introduced LD 713, a bill that seeks to exclude data centers from existing state tax incentive programs, specifically the Business Equipment Tax Exemption and Dirigo Business Incentives. Grohoski argues that data centers typically do not generate a significant number of jobs, which is often the primary justification for offering these tax breaks. This legislative push follows local actions, such as the Lewiston City Council's rejection of a proposed artificial intelligence data center in December, a decision influenced by public opposition. During discussions, Senator Matt Harrington (R-Sanford) expressed support for a modified version of Sachs' moratorium bill, one that would permit the Public Utilities Commission to approve projects deemed appropriate, balancing economic development with potential negative impacts. Opponents, including the conservative Maine Policy Institute, argue that singling out the data center industry could make Maine less competitive compared to neighboring states actively attracting such investments. Both bills are scheduled for consideration in the House and Senate before lawmakers adjourn in mid-April.