Maine legislature passes first US moratorium on large data centers

The Maine House and Senate approved LD 307 this week, imposing a moratorium on new data centers requiring 20 megawatts or more until at least October 2027. The bill, which prohibits state and local approvals for such facilities, now awaits action from Gov. Janet Mills amid national concerns over surging energy demands from AI infrastructure.

The House passed the bill 79-62, followed by Senate approval 21-13. Democrats controlling both chambers argued the pause allows time to develop regulations addressing data centers' high energy and water use, establishing a special council to assess impacts and recommend policies. Lead sponsor Rep. Melanie Sachs (D) called other states' experiences—like Virginia and Texas—a 'cautionary tale,' urging Maine to ensure its 'regulatory framework can meet the moment.'

Republicans opposed, warning of lost investment. Sen. Matt Harrington (R) cited potential projects in Sanford and Jay worth 'billions of dollars.' Gov. Mills sought an exemption for a Jay site on a former paper mill, but it was omitted from the final version. Her office declined comment; she has 10 days to sign, veto, or let it become law.

Maine hosts about 10 small data centers, none of the large hyperscalers drawing opposition elsewhere. Advocates like Sarah Woodbury of Maine Conservation Voters praised the move amid local resistance. U.S. data centers consumed over 50 gigawatts last year, exceeding New England's peak demand.

The bill aligns with a national pushback against rapid AI data center buildout, following delays from tariffs, equipment shortages, and community opposition under the Trump administration. It echoes proposed pauses in states like Indiana, Michigan, Minnesota, and Illinois, and cities including Denver and Dallas. Maine's high electricity rates position it as a potential precedent, with bipartisan federal calls for oversight from Sens. Warren, Sanders, Hawley, and Rep. Ocasio-Cortez.

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Aerial view of TeraWulf's Kentucky AI data center site showcasing modern facilities in a rural setting.
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TeraWulf acquires Kentucky site for 1 GW AI data center

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TeraWulf announced the purchase of a Kentucky development site to support more than 1 gigawatt of AI and high-performance computing capacity. The bitcoin miner turned infrastructure developer saw its stock rise 13 percent following the news.

Nearly half of planned US data centers for this year risk delays or cancellation due to import issues from China, exacerbated by tariffs. Community opposition is fueling moratoriums, with Maine poised to halt new construction until 2027. These hurdles challenge President Trump's push for rapid AI infrastructure buildout.

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Democratic Senator Elizabeth Warren and Republican Senator Josh Hawley have called on the Energy Information Administration to require annual reporting on data center energy use. The bipartisan letter, sent on Thursday, aims to address the growing demands of artificial intelligence infrastructure. It highlights concerns over electricity costs for families amid expanding data centers.

Meta has agreed to fund seven new natural gas power plants and extensive energy infrastructure to support its largest data center under construction in Richland Parish, Louisiana. The deal with Entergy Louisiana includes 240 miles of transmission lines and battery storage, as reported by the Wall Street Journal. This follows a non-binding pledge by tech companies to cover power costs for AI data centers.

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Documents indicate Google plans to operate one of the largest data centers in the United States in southeast Nebraska, powered by a Tenaska natural gas plant that could generate up to 3,000 megawatts. The project, which may incorporate carbon capture technology, hinges on a state bill allowing private power plants to connect to the public grid. Tenaska has secured options on over 2,600 acres for the site.

Ohio has suspended tax breaks for new data center projects after losing $1.5 billion in revenue. Ongoing projects will continue to receive the exemptions. New developments will not qualify for now.

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Following the March 10 building permit for its planned data center in Horndal, Google Sweden has responded to key objections regarding electricity prices, job creation, and community benefits. Communications chief Joakim Larsson clarifies the project's status, as groundwork continues without a final business decision to build.

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