Temporary Block on AI Data Centers Heads to Gov. Janet Mills' Desk, Faces Uncertain Future

The Maine State Legislature has passed a groundbreaking bill, LD 307, enacting a temporary ban on the approval of large data centers with loads of 20 megawatts or more until November 1, 2027. This measure, the first of its kind in the nation, now awaits action from Governor Janet Mills. Governor Mills has expressed reservations, stating that her support hinges on an exemption for a $550 million project planned for the former Androscoggin paper mill in Jay. She emphasized the need for jobs in Jay, alongside appropriate safeguards for water and electricity resources. However, the final draft of the bill, approved by lawmakers, does not include this requested exemption. The legislation also mandates the creation of a Maine Data Center Coordination Council. This council will be tasked with providing strategic input, facilitating coordinated state planning, and evaluating policy tools to address data center opportunities and their associated risks to the state. The council is required to submit a comprehensive report detailing its findings and recommendations by February 1, 2027. The bill, sponsored by Democratic Rep. Melanie F. Sachs, was introduced to protect ratepayers, support local communities, uphold environmental values, and assess grid capacity before widespread data center development. Votes in the House and Senate largely followed partisan lines, with Democrats primarily in favor. The Maine Policy Institute (MPI), a nonpartisan think tank, opposed the measure, arguing against "top-down energy planning" and highlighting Maine's already high electricity rates. MPI also questioned the need for another state-level planning council.