Maine Becomes First U.S. State to Pass Data Center Moratorium as Backlash Spreads to at Least 10 States
Maine's legislature passes LD 307, an 18-month ban on data centers over 20 megawatts, sending the bill to Governor Mills as similar moratorium proposals proliferate nationwide.
Overview
Maine’s legislature completed passage of LD 307 on April 14, sending the nation’s first statewide data center moratorium to Governor Janet Mills for a final decision. The bill imposes an 18-month ban on new data centers with power requirements of 20 megawatts or more, freezing large-scale construction through November 2027 while a state-appointed council studies the facilities’ effects on electricity costs, water supplies, and local communities. The vote makes Maine the first state to convert the growing wave of data center opposition into binding legislation, a milestone in an escalating conflict between the artificial intelligence industry’s appetite for computing power and communities bearing the costs.
This follows earlier reporting by The Machine Herald on the White House Ratepayer Protection Pledge signed by seven AI companies in March, when six states had introduced moratorium bills. That number has since nearly doubled.
What We Know
The bill passed the Maine House on April 8 with bipartisan support, including six Republican votes in the Democrat-controlled chamber, before clearing the Senate on April 14, according to CNN. The moratorium applies specifically to facilities drawing 20 megawatts or more from the grid, a threshold that captures hyperscale data centers while leaving smaller installations unaffected.
LD 307 also establishes a coordinating council composed of government officials, energy experts, and other stakeholders. The council’s mandate includes examining future electric load projections for New England’s grid, identifying strategies to protect Maine residents from rising electricity costs, and developing policy recommendations for regulating data center development going forward, as reported by CNBC. The Maine legislature’s appropriations committee approved a $95,000 budget for this study effort.
Two specific projects are directly affected by the legislation. A proposed $550 million Sentinel Data Centers facility at the former Androscoggin paper mill in Jay, which closed in 2023 after employing 230 people, would require up to 150 megawatts of capacity with a 25-megawatt grid draw, according to CNN. A second proposal by LiquidCool Solutions at the former Loring Air Force Base in Limestone originally planned for 26 megawatts but adjusted its application to fall below the 20-megawatt threshold.
Governor Mills had previously stated the bill needed an exemption for the Jay project to secure her support. “The people of Jay need those jobs, with appropriate guardrails on preserving water resources, electricity resources, local generation and all those things,” Mills said, according to CNBC. An amendment with that carve-out failed in the legislature, and the version now awaiting her signature contains no exemptions.
The Spreading Movement
Maine’s action is part of a broader national trend. At least 10 states, including Vermont, New Hampshire, and New York, are now considering comparable bans, according to CNN. New York has proposed a three-year pause on all new data center construction, while Oklahoma’s SB 1488 targets facilities exceeding 100 megawatts with a pause extending through November 2029.
The bills reflect intensifying public opposition. A March 2026 Quinnipiac poll found 65 percent of Americans oppose data centers in their communities, with concerns about electricity costs (72 percent), water use (64 percent), and noise (41 percent) topping the list, as reported by CNN. Maine Representative Amy Roeder cited constituents facing “monthly power bills that are hundreds of dollars” as a key motivator, according to CNN.
The state-level pushback sits in tension with federal policy. The Trump administration’s July 2025 executive order streamlined permitting and environmental review for data centers exceeding 100 megawatts or costing over $500 million. However, the federal directives explicitly do not override state authority over land use, zoning, or utility regulations, leaving a gap that states are now actively exploiting.
What We Don’t Know
The most immediate uncertainty is whether Governor Mills will sign or veto the bill. Her stated preference for an exemption for the Jay project failed to materialize in the final legislation, and she had not indicated her decision as of April 15, according to the Washington Post.
It also remains unclear how the 20-megawatt threshold will interact with projects that attempt to subdivide capacity to fall below the limit, as LiquidCool Solutions has already done in Limestone. Whether the study council will recommend permanent restrictions or lighter-touch regulations such as disclosure requirements and impact fees is an open question that will shape the moratorium’s legacy.
The broader national picture is equally uncertain. While more than 10 states are advancing similar proposals, none besides Maine has reached a governor’s desk, and the political dynamics vary widely. Industry groups warn the moratoriums could redirect investment to states with fewer restrictions, potentially concentrating environmental burdens in communities with less political leverage.
Analysis
Maine’s moratorium represents a qualitative shift in the data center debate. In March, the political dynamic centered on voluntary industry pledges and proposed legislation. Six weeks later, a state legislature has actually passed a binding restriction, establishing a precedent that other states may follow. The bipartisan vote suggests the issue cuts across party lines in a way that purely partisan legislation does not, reflecting the breadth of concern about utility costs and local impacts.
The industry’s response underscores the stakes. The Data Center Coalition warned the moratorium could “send a signal that the state is closed for business,” according to CNN, while Maine’s State Chamber of Commerce argued a blanket ban will discourage investment in rural communities that need economic development. The tension between economic opportunity and community protection is starkest in Jay, where a closed paper mill represents both the loss the data center was meant to replace and the reason locals distrust large industrial facilities.
With U.S. data center power demand projected to nearly triple by 2030, the math behind the backlash is straightforward. Whether Maine’s moratorium becomes a model or an outlier will depend on Governor Mills’ decision and on how the study council’s findings shape the next generation of data center regulation.