Maine set to become first state with data center ban
Maine is poised to implement the first statewide ban on data center construction; It’s a move that could pave the way for other states to take similar measures and curb a growing industry.
Lawmakers in Maine this week green-lighted the text of a bill that would block data centers from being built in the state until November 2027. The measure, which is expected to pass final within the next few days, also creates a council that would recommend potential guardrails to ensure data centers don’t lead to higher energy prices or other complications for Maine residents.
While the bill received bipartisan support, it faced fierce opposition from technology groups and business groups concerned that even a brief delay in construction would set the state back.
Glenn Adams, director of business development for Sargent Corp., said any place that puts data centers on hold, even temporarily, will be left behind. The Maine-based construction company is building data centers in Virginia and North Carolina.
“Things are going very fast. There is a race against other countries,” he said in an interview. “If Maine says ‘no,’ we’re saying no to all these companies, potential developers and investors, and they can go somewhere else very quickly.”
Although Maine has not attracted any major data center projects, several smaller projects are under construction or in the early planning stages. Even without major investment, data centers and their potential impact are becoming a flashpoint in politics across the United States as thousands of new projects are underway as part of the AI boom.
Fears of rising electricity prices are a particular sore point in Maine, which already has one of the highest rates in the United States. According to the US Energy Information Administration.
Seth Berry, executive director of Our Power, a nonprofit focused on energy in Maine, said a pause will give time to find ways to increase the state’s energy supply and prevent costs from rising further.
“If data centers are allowed to increase these costs even further, and we’re not prepared for the data center rush, that could be truly devastating, especially for our lower and working-class populations,” he said.
Even if companies pledge to build their own power supplies along with data centers, that won’t be enough to offset the rise in electricity costs, Berry said.
Businesses in Maine defy possible ban
But the business community has pushed back, saying more companies paying for the cost of electricity in the state would ease the burden on homeowners. Maine lost most of its Patrick Woodcock, President and CEO of the Maine State Chamber of Commerce, said data centers could fill a gap left in the pulp and paper industry over the past few decades.
Woodcock also said Maine already has a “substantial” permitting process to ensure new data centers don’t inflate utility bills or harm the environment.
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“We have a robust regulatory process and that process can be applied to these data centers,” Woodcock said. “Therefore, we think that these should definitely be reviewed and go through the state’s permitting process. However, the moratorium is the wrong approach.”
Maine may be the first state to pause building data centers, but it’s not the only state considering a construction pause. Bills to temporarily halt data center construction have been introduced in at least a dozen states. National Conference of State Legislatures.
This includes two data center hotspots, Virginia and Georgia. Meta, Google, Microsoft and others are building data centers, but Georgia’s legislature remains undecided on whether to lift the data center ban.
All eyes are on Maine Governor Janet Mills
The Maine bill still has several steps to go through before it becomes law, especially the Governor. Janet Mills will use her veto power.
Mills asked lawmakers to add exemptions for several areas in the state where data center construction can continue. However, an amendment to do this fell short in the Parliament from 29 to 115 votes.
Complicating Mills’ decision is his campaign to become Maine’s next senator. Mills faces oyster farmer Graham Platner in the high-profile Democratic primary. Leading Platner Mills latest polls by double digits.
Mills’ office did not immediately respond to an email seeking comment.
“Threatening a veto is not going to be a popular position,” Berry said. “He really needs the support of Maine people right now for his Senate campaign.”
Correction: Patrick Woodcock is president and CEO of the Maine State Chamber of Commerce. An earlier version stated the name of the organization incorrectly.
