Lawmakers in Maine have approved a first-in-the-nation bill that would temporarily halt the construction of large-scale data centers, placing the final decision in the hands of Gov. Janet Mills amid growing concerns over energy demand and environmental impacts.
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The legislation, sponsored by Rep. Melanie Sachs, proposes an 18-month moratorium on new data center developments requiring more than 20 megawatts of power. The measure cleared both chambers of the state Legislature and is intended to pause expansion while officials assess the long-term implications of the rapidly growing industry.
Supporters of the bill argue the pause is necessary to safeguard local resources and protect residents from potential increases in utility costs. Data centers, which power artificial intelligence and cloud computing infrastructure, require significant electricity and water for operations and cooling systems.
Lawmakers backing the measure expressed concern that the growing demand could strain infrastructure and further increase energy costs in a state where electricity rates are already among the highest in the nation.
In addition to the temporary halt, the bill would establish a study group composed of state officials and industry experts. The commission would evaluate the effects of data center development on electricity rates, water consumption and environmental sustainability, while also recommending future regulatory frameworks.
The proposal reflects a broader national conversation around the rapid expansion of data centers and their impact on local communities. As artificial intelligence adoption accelerates, demand for large-scale facilities has surged, prompting increased scrutiny from policymakers and residents alike.
Gov. Mills has previously indicated she wanted the legislation to include an exemption for a proposed data center project in the town of Jay, where the closure of a paper mill in 2023 resulted in the loss of more than 200 jobs. However, lawmakers rejected the amendment in the House, leaving the bill unchanged.
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The governor now faces a tight timeline to act on the legislation. She has less than a week to sign the bill into law, veto it or allow it to take effect without her signature.
Her decision carries significant implications not only for Maine but also for other states considering similar measures. Across the country, communities are increasingly pushing back against data center developments, citing concerns over noise, pollution, land use and rising electricity costs.
If enacted, the moratorium would position Maine as the first state to formally pause large-scale data center construction in response to these challenges, potentially setting a precedent for future regulatory action nationwide.
Originally reported by Channa Steinmetz in Maine Beacon.
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