Maine Looks to Become the First State to Outlaw Data Centers

Maine's Democratic-controlled legislature has passed a landmark bill proposing an 18-month moratorium on new data center construction exceeding 20 megawatts, a first-of-its-kind statewide ban in the U.S. The legislation aims to allow a study group to assess the facilities' impacts and recommend future regulations, including stripping certain tax exemptions. The bill's fate now rests with Governor Janet Mills, a centrist Democrat who must decide whether to sign or veto it. Mills is reportedly weighing the political implications for her U.S. Senate primary race, particularly concerns that a ban could harm economically struggling rural areas like the town of Jay, where a data center was planned for a former paper mill site. An amendment to exempt certain projects like Jay's was defeated. Adding to the complexity, former President Donald Trump issued an executive order threatening federal lawsuits against states that impose "cumbersome regulation" on AI companies, which could be interpreted as a deterrent to Maine's proposed moratorium. This puts Governor Mills in a difficult position, balancing state sovereignty, local economic needs, and federal pressure.