Maine Becomes First U.S. State to Pass a Data Center Moratorium as Legislature Votes to Freeze Large Facilities Until Late 2027
Maine's legislature passed LD 307, banning data centers above 20 megawatts until October 2027, making it the first state to enact such a freeze amid growing national backlash over energy, water, and community impacts.
Overview
Maine has become the first U.S. state to pass legislation imposing a statewide moratorium on large data centers, a milestone in the growing national backlash against the energy-hungry facilities powering the artificial intelligence boom. The bill, LD 307, passed the Maine House 79-62 and the Senate 21-13, according to Inside Climate News, and now awaits a decision from Governor Janet Mills.
The measure prohibits state and local government approvals for data centers consuming 20 megawatts or more of power until at least October 2027. It also establishes the Maine Data Center Coordination Council, which will evaluate the impacts of AI data center development and submit a final report to the legislature by February 2027, according to the Maine House Democrats.
This follows earlier reporting by The Machine Herald on the White House ratepayer protection pledge and state-level pushback against data center construction, when Maine was among several states with moratorium proposals under consideration.
What We Know
The bill was sponsored by Rep. Melanie Sachs (D-Freeport), who framed the legislation as a regulatory pause rather than an outright rejection of the industry. “It’s not that there’s no place for data centers in Maine,” Sachs told CNN. “Frankly, the tradeoffs have not been shown to be of benefit to our ratepayers, water usage or community benefit in terms of economic activity.”
Sachs also noted that community awareness of incoming projects was minimal before the bill drew attention. “Once I put the bill in, they started coming out of the woodwork,” she told CNN, referring to residents discovering planned data center developments in their areas.
The vote drew bipartisan support. The bill passed the Democratically-controlled House with several Republican votes, according to CNN. Rep. Amy Roeder (D) emphasized electricity costs as a driving concern: “We’re getting killed by electric prices. To put a data center that’s going to use up a lot of resources in the middle of this just feels irresponsible,” she told CNN.
Opponents warned the moratorium could deter investment. Sen. Matt Harrington (R) argued that the bill risks blocking “billions of dollars in potential investment in Maine,” according to Inside Climate News.
The data center industry has pushed back against the legislation. Dan Diorio of the Data Center Coalition told CNN that the bill “says that the state is willing to essentially put a blanket ban on you if it decides that you may be politically unfavorable.”
The Governor’s Decision
Governor Mills has not publicly committed to signing or vetoing the bill. She has 10 days to act, and can sign it, veto it, or allow it to become law without her signature. Mills has previously indicated she wanted an exemption for a proposed $550 million data center project at the former Androscoggin paper mill in Jay, a facility that employed 230 workers before closing in 2023. The bill as passed contains no such exemption, according to Inside Climate News.
National Context
Maine’s vote arrives amid a broader wave of resistance to data center expansion across the United States. Thirteen other states have introduced moratorium proposals, though none have passed a legislative chamber, according to Inside Climate News. U.S. data center power demand now exceeds 50 gigawatts, roughly double New England’s peak electricity demand, the outlet reported.
Over 140 local groups nationwide have blocked or delayed more than $60 billion in data center investments within approximately one year, according to CNN. At the federal level, Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez have proposed a national AI data center moratorium, according to Inside Climate News.
Sarah Woodbury of Maine Conservation Voters summarized the constituency pressure driving the legislation: “Voters do not want these facilities in their backyards,” she told Inside Climate News.
What We Don’t Know
Whether Governor Mills will sign or veto the bill remains uncertain. Her office has not responded to press inquiries about her plans. It is also unclear whether the absence of an exemption for the Jay paper mill project will factor into her decision.
The broader question of whether other states will follow Maine’s lead is open. Minnesota and Illinois are considered states to watch, according to Inside Climate News, but no other state legislature has advanced a moratorium bill to a floor vote.
The long-term impact on Maine’s economy and energy infrastructure will depend on the findings of the Data Center Coordination Council, which has until February 2027 to deliver its recommendations.