Maine Lawmakers Pass First-in-Nation Data Center Moratorium

The Maine legislature has passed LD 307, a bill imposing a temporary moratorium on new data centers consuming at least 20 megawatts until November 1, 2027, making it the first US state to enact such a measure. State Rep. Melanie Sachs (D), the bill's sponsor, stated the moratorium's purpose is to provide state officials and lawmakers with time to develop a comprehensive policy framework for data centers, learning from other states where rapid development has outpaced regulation. The legislation also mandates the creation of the Maine Data Center Coordination Council, a 14-person body tasked with protecting ratepayers, ensuring electric grid reliability, minimizing environmental impacts, and promoting responsible economic development while considering the state's climate goals. The bill now awaits action from Gov. Janet Mills (D), who has 10 days to sign or veto it. Mills reportedly expressed a desire for a carve-out for a data center project in Jay, Maine, which proponents like Maine State Chamber of Commerce President and CEO Patrick Woodcock argue is vital for local economic recovery following a paper mill closure. Industry representatives, including Dan Diorio, Vice President of State Policy at the Data Center Coalition, contend that the bill is anti-business and will deter investment, job creation, and tax revenue. Sachs highlighted Maine's relatively lower energy rates within New England, abundant natural resources, and cooler climate as potential draws for developers, but emphasized the need to balance this with ratepayer impact and environmental stewardship. The statewide bill follows local efforts to curb data center development, such as the Bangor City Council's recent six-month moratorium, and similar measures proposed or enacted in other states like South Dakota, Vermont, Port Washington, Wisconsin, and Tulsa, Oklahoma.