Data centers are spreading around the country. Now, data-center bans are, too

Maine is on the verge of becoming the first state to enact a temporary moratorium on new large data centers, a bill that has already passed the state House and awaits a Senate vote. The legislation, championed by Democratic lawmaker Melanie Sachs, aims to pause development until late 2027 to allow state energy and environmental regulators to establish guidelines for the industry's significant electricity and water consumption, as well as its economic and job impacts. Despite initial assumptions that Maine held little interest for data center developers, the bill's introduction revealed two already proposed projects, including one at the Androscoggin Mill in Jay. Governor Janet Mills has indicated support for the bill should it pass the legislature, though an amendment to exempt existing data centers failed in the House. This move by Maine reflects a growing national trend, with similar moratorium proposals surfacing in states like New York, South Carolina, Oklahoma, and Vermont, alongside numerous local bans. Proponents, including South Carolina Rep. Steven Long, argue these measures are a necessary response to the data center industry's rapid, often secretive expansion, which has outpaced public policy and limited community input. Concerns about increased electricity rates are a major motivator for these bills, as noted by Sachs and fellow Maine Rep. Amy Roeder, with constituents facing rising power bills. However, the Data Center Coalition, a trade group, cautions that such bans could deter further investment and signal that states are "closed for business," impacting not only data center development but also other advanced industries. While the industry highlights benefits like job creation and tax revenue, nonpartisan research firm Data Center Watch reports that over 140 local groups have already blocked or delayed more than $60 billion in US data center projects, indicating a significant, nonpartisan "groundswell of local opposition" across the country. Harvard sociology professor Jason Beckfield attributes this opposition to the "speed, scale and secrecy" of data center projects, which leaves communities feeling unable to keep pace with developments.