First Statewide Data Center Ban Passed by Maine Legislature

Maine’s Democrat-controlled legislature has passed a groundbreaking ban on the construction of large data centers exceeding 20 megawatts (MW), marking the first statewide restriction of its kind in the United States. The House approved the measure 79-62, and the Senate followed with a 21-13 vote, largely along party lines. The bill now awaits the signature of Governor Janet Mills, who has indicated conditional support for the legislation. The ban imposes a moratorium on new large data center projects until November 2027 and establishes a council to assess the economic and social impacts of data centers on Maine residents. Despite Maine having relatively few data center projects—only two currently mapped—the legislation responds to concerns about rising electricity costs linked to data center demand. Maine ranks fourth highest in the nation for electricity prices, and critics argue that large data centers exacerbate this issue by consuming substantial amounts of power. The 20 MW threshold set by the bill is notably low compared to the average modern data center, which typically uses around 40 MW, effectively blocking the development of facilities designed to support artificial intelligence (AI) operations and other high-capacity computing needs. This move by Maine contrasts with other states where similar efforts to regulate or ban large data centers have largely stalled or failed, including Georgia, Maryland, Michigan, New Hampshire, New York, Oklahoma, South Carolina, South Dakota, Vermont, Virginia, and Wisconsin. The legislation reflects growing national debates over the environmental, economic, and infrastructural impacts of data centers, particularly as AI technologies drive demand for increasingly powerful computing facilities. The newly formed council will play a critical role in shaping future policy by evaluating the broader costs and benefits of data centers to the state’s population and economy.