Maine Presses Pause on Large Data Centers. Will Other States Follow Its Lead?

Maine's legislature, including both the House and Senate, has passed LD 307, a bill that establishes a moratorium on the development of large data centers across the state until at least October 2027. The bill, which prohibits state and local governments from approving data centers requiring at least 20 megawatts of electricity, now awaits the signature of Gov. Janet Mills, who has not yet indicated her stance. State Rep. Melanie Sachs, a Democrat and lead sponsor, emphasized the bill's purpose as creating "breathing room" to develop a proper regulatory framework, drawing lessons from other states experiencing backlash against data center growth. The measure also calls for a special council to evaluate concerns and recommend new policies. Conversely, State Sen. Matt Harrington, a Republican, opposed the bill, arguing it would deter billions in potential investment, citing discussions for data centers in Sanford and Jay that would be impacted. Mills had reportedly sought an exemption for a project in Jay, which was not included in the final bill. Environmental advocates, like Sarah Woodbury of Maine Conservation Voters, have lauded the bill as a groundbreaking model for states to regulate rapid data center expansion, noting strong public opposition in Maine and elsewhere. The legislation comes amidst rising national concerns about data centers' immense energy and water demands, with about a dozen other states considering similar legislative pauses or bans. While U.S. Sen. Bernie Sanders and U.S. Rep. Alexandria Ocasio-Cortez have proposed a national moratorium, Maine is the first state to pass such a bill through its legislative chambers.