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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