Lawmakers debate pause on data centers

News Clip3:36NEWS CENTER Maine·ME·3/25/2026

Maine lawmakers are debating a bill (LD 307) to enact a temporary moratorium on new data center development, which would also establish a review council for future regulations. While supporters argue it's necessary for proper review, some, like landowner Tony McDonald, fear it will kill ongoing projects like the proposed data center at the old Jay Paper Mill. The bill faces an upcoming vote in the House.

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Gov: Maine Legislature, Committee on Gross, J Select Board, Governor's Office
Lawmakers in Maine are currently debating a bill, LD 307, which proposes a temporary moratorium on the development of new data centers across the state. The bill also calls for the creation of a review council to establish new regulations for data center construction and operation in Maine. Christian Harsa of News Center Maine reported from the state house, highlighting the contentious nature of the proposed legislation. Five data center projects have been discussed in locations such as Limestone, West Cassett, Lewiston, Sanford, and Jay, but all but one have either stalled or face significant challenges due to this bill. Supporters of LD 307 argue that a pause is crucial to allow the review council to develop comprehensive regulations, ensuring responsible growth. However, opponents contend that such a moratorium would halt projects already underway, potentially killing them entirely. Landowner Tony McDonald, who hopes to redevelop the old Jay Paper Mill into a data center, expressed concern that the moratorium would kill his project, which is slated to break ground this summer. He emphasizes the economic benefits, including 800-1000 construction jobs and 125-150 permanent jobs, and argues his project would not strain local resources more than the former paper mill. LD 307 has two drafts, one from Democratic Representative Melanie Sachs and another from Republican Senator Matt Harrington. Both agree on the need for review and a moratorium, but Harrington seeks a bypass option for projects that can prove they won't negatively impact ratepayers or the environment. Sachs opposes any bypass, advocating for all projects to undergo the same scrutiny, with the only exception being projects under 20 megawatts, such as one planned for the old Loring Air Force Base. The J Select Board has sent a letter to the governor's office supporting McDonald's project and seeking an exception. The bill could be voted on in the House as early as tomorrow.