Maine OKs First Statewide Ban on Large Data Centers

Maine lawmakers have approved a pioneering statewide moratorium on the construction of large data centers, effectively halting new projects until November 2027. This legislative action, which passed on Tuesday, aims to provide the state with time to assess the potential impacts of these power-intensive facilities on electricity costs and the environment. The bill specifically targets data centers consuming 20 megawatts or more, a capacity capable of powering over 15,000 homes. As part of the measure, a new Data Center Coordination Council will be established to review the implications for Maine's power grid and ratepayers, who already face some of the highest residential electricity prices in the country, according to the Wall Street Journal. The legislation has moved to the desk of Democratic Governor Janet Mills for her signature. Governor Mills has previously expressed support for the pause, making an exception for a data center project already planned for the town of Jay, citing job creation needs balanced with environmental and electricity resource guardrails. The vote largely followed party lines, with some Republican support. Maine's decision reflects a growing trend, with at least 10 other states and various local governments, including those in Indiana and Michigan, considering or enacting similar slowdowns in response to the rapid, AI-driven expansion of data center construction. The issue is also emerging as a factor in state politics, particularly with Governor Mills' bid for a US Senate seat.