Maine is poised to enact the first statewide ban on data center construction, potentially paving the way for other states to follow suit and put a brake on the growing industry.
Maine lawmakers this week greenlit the text of a bill that would block data center construction in the state until November 2027. The bill, which is expected to pass in the coming days, would also create a council to recommend potential guardrails for data centers to ensure that Maine residents don’t face higher energy prices and other complications.
The bill has bipartisan support, but faces fierce opposition from tech groups and businesses worried that any delays in construction could slow down the state’s economy.
Glenn Adams, Sargent’s director of business development, said shutting down data centers, even temporarily, would put the company on the back burner. The Maine-based construction company is building data centers in Virginia and North Carolina.
“Things are moving very fast. There is competition from 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 could quickly move elsewhere.”
Although Maine has not attracted large data center projects, several smaller projects are under construction or in early planning stages. Even without major investments, data centers and their potential impact are becoming a political flashpoint across the United States, as thousands of new projects are underway as part of the artificial intelligence boom.
Concerns about price increases are particularly troubling in Maine, which already has some of the highest electricity rates in the country, according to the U.S. Energy Information Administration.
Seth Berry, executive director of Our Power, a nonprofit focused on energy in Maine, said the moratorium would give the state time to find ways to increase 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 gold rush, it could be really devastating, especially for lower-class and working-class people,” he said.
Berry said that even if companies commit to building their own power supplies along with their data centers, it likely won’t be enough to offset the increase in power costs.
Maine companies contesting potential ban
But businesses are pushing back, arguing that increasing the number of businesses paying electricity bills in the state would ease the burden on homeowners. Maine has lost much of its pulp and paper industry over the past few decades, and data centers could fill the void, said Patrick Woodcock, president and CEO of the Maine Chamber of Commerce.
Woodcock also said Maine already has a “significant” permitting process in place to ensure new data centers don’t raise electricity 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. “So we certainly think they should be reviewed and should go through the state permitting process. But a moratorium is the wrong approach.”
Maine may be the first state to pause data center construction, but it’s not the only state considering pausing construction. Bills to temporarily halt data center construction have been introduced in at least a dozen states, according to the National Conference of State Legislatures.
This includes two data center hotspots in Virginia and Georgia. Meta, google, microsoft Countries such as Georgia are building data centers, but the Georgia state legislature caved in before the data center ban was adopted.
Attention Maine Governor Janet Mills
Several steps must be taken before Maine’s bill becomes law, including whether Gov. Janet Mills vetoes it.
Mills urged lawmakers to include exemptions for some areas of the state where data center construction can continue. However, an amendment to do so failed in the House by a vote of 29 to 115.
Complicating Mills’ decision is her campaign to become Maine’s next senator. Mills will face oyster farmer Graham Platner in the highly anticipated Democratic primary. The latest polls show Mr. Plattner leading Mr. Mills 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. “She really needs the support of Maine people right now for her Senate campaign.”
Correction: Patrick Woodcock is president and CEO of the Maine Chamber of Commerce. The organization name was incorrectly listed in previous versions.
