Maine passes ban on new data centers for 1.5 years, adds study options

Maine's legislature has passed a bill imposing a 1.5-year moratorium on new large data centers consuming over 20 megawatts of power, making it the first state to enact such a ban. The measure, which extends until fall 2027, now awaits the signature of Democratic Gov. Janet Mills, whose stance is unclear after legislators rejected her request for an exception for a specific data center project at an old paper mill site. The bill, sponsored by state Rep. Melanie Sachs, also establishes a coordinating council with government officials and experts to provide recommendations on future state data center policies and allocates $95,000 for its operation. This action comes amidst growing concerns that data centers strain power grids, increase electricity bills, and consume excessive water, issues highlighted by Sachs, who stated that "two or three data centers can really impact the state as a whole." While proponents argue data centers create jobs and support technological growth, the Maine State Chamber of Commerce CEO, Patrick Woodcock, urged Gov. Mills to veto the bill, citing existing review processes and safeguards for ratepayers and the environment. Other localities, such as Port Washington, Wisconsin, are also exploring regulations, with Port Washington recently passing a referendum requiring voter approval for larger projects, and Pennsylvania considering a bill to address data centers' impact on electricity bills.