Legislature passes moratorium on data centers

The Maine Legislature has passed a bill establishing a temporary statewide moratorium on data centers. The legislation now proceeds to Governor Janet Mills' desk for her signature. Should the Governor sign it into law, Maine would become the first state in the United States to implement such a moratorium on data center development. State Representative Melanie Sachs, the bill's sponsor, stated the moratorium's intent is to ensure Maine is adequately prepared for these facilities, focusing on the necessary infrastructure. The bill mandates the Department of Energy Resources to establish the Maine Data Center Coordination Council, tasked with preparing the state for data center impacts. Governor Mills, through a spokesperson, expressed support for the moratorium (LD 307) to evaluate the impacts of large-scale AI data centers on public resources, the environment, and Maine ratepayers. However, she also advocated for an exemption for a smaller-scale project at the Jay Paper Mill site, emphasizing its reuse of existing industrial infrastructure, avoidance of new costs for ratepayers or strain on the local electrical grid, and potential for jobs and economic activity in the region. Despite the Governor's request, the proposal that passed did not include the exemption for the Jay mill site. Governor Mills' office has not yet indicated whether she plans to sign the bill into law.