Maine moves to become first state to ban data centers

The Maine Senate, on April 14, took a final vote to enact LD 307, first-of-its-kind legislation proposing a moratorium on data centers requiring 20 megawatts or more of power until November 2027. This bill, which previously passed the Maine House on April 8, now proceeds to Governor Janet Mills' desk for a final decision. Mills has 10 days to sign the bill into law, issue a veto, or allow a pocket veto. If enacted, Maine would become the first U.S. state to ban data center development, a measure intended to mitigate concerns regarding rising electricity rates and environmental impacts. The legislation is set to halt proposed developments in various parts of Maine, including the rural mill town of Jay and at the former Loring Air Force Base in Limestone. It also mandates the creation of a council to study future electric load projections on New England's grid and to devise strategies to protect Mainers from increased electricity rates. While Governor Mills has generally supported the legislative efforts, she previously advocated for an exemption for a data center project at a retired paper mill in Jay; however, an amendment for this carveout failed to pass the legislature. This legislative action coincides with a broader national trend of increasing power demands from data centers, with BloombergNEF projecting U.S. demand to reach 106 gigawatts by 2035. New England's current grid capacity stands at 30 gigawatts, with a significant portion fueled by natural gas. Patrick Woodcock, president and CEO of the Maine State Chamber of Commerce, has voiced opposition to the blanket ban, arguing that data centers could play a role in the state's transition from fossil fuels and attract crucial investment to rural communities. Concurrently, at least 10 other states, including Vermont, New Hampshire, and New York, are reportedly considering similar statewide data center bans.