Sleepy coastal state fights Big Tech with first-of-its-kind ban - risking billions and jobs

The state of Maine is on the verge of enacting the nation's first statewide ban on large-scale data center construction, reflecting growing national opposition to the rapid expansion of AI infrastructure. Lawmakers in Maine have approved a bill that would implement an 18-month moratorium on new data centers consuming more than 20 megawatts of power, with the goal of studying their impact before November 2027. The bill, which passed both the House and Senate and was approved by the Legislature's appropriations committee, now awaits the signature or veto of Governor Janet Mills. Governor Mills, however, is advocating for a carve-out that would allow a $550 million data center project at the former Androscoggin paper mill in Jay to proceed this year. Mills has emphasized the economic benefits of this project, including job creation and investment in a region hit hard by the closure of the paper mill. Tony McDonald, the developer of the Jay data center, expressed frustration, stating the project was set to begin construction in July before getting 'caught in this dragnet.' The legislative effort is fueled by public concerns over soaring electricity costs, potential environmental damage, and health risks associated with pollutants from data centers. Maine currently experiences some of the highest residential electricity prices in the country. While Maine has not attracted hyperscale developers like Google or Microsoft, previous proposals in Wiscasset and Lewiston faced local opposition. Other states like New York, South Carolina, and Oklahoma are also considering similar restrictions, and some municipalities in Michigan and Indiana have already enacted temporary pauses.