Maine Legislature passes data center moratorium

The Maine Legislature on Tuesday approved a temporary, statewide moratorium on data centers, a measure that would prohibit municipalities, state agencies, and quasi-independent entities from issuing approvals for data centers with a load of 20 megawatts or more. This makes Maine the first state to pass such a bill, which now awaits the signature of Governor Janet Mills. Rep. Melanie Sachs (D-Freeport), the bill's sponsor, emphasized that the legislation positions Maine to respond responsibly to the rapidly evolving data center industry, addressing concerns about impacts on ratepayers, the electric grid, and the environment. The moratorium is set to last until November 1, 2027, and would establish the Maine Data Center Coordination Council to study the risks and benefits of these facilities. Governor Mills, while acknowledging the widespread use of technology, has expressed a desire for the bill to exempt a proposed data center project in Jay. Jay town leaders have also urged the Governor to veto the bill if it does not allow their proposed project, citing the profound negative impact of the Pixelle paper mill's closure on their community. They describe their proposed $550 million data center as "small scale," utilizing the existing electrical grid and minimal water compared to the former mill, projected to create 800-1,000 construction jobs and 125-150 permanent high-paying jobs. Locally, the Bangor City Council recently passed its own six-month data center ban to allow time to assess potential impacts. Mills has 10 days to either sign the bill, veto it, or allow it to become law without her signature.