The Maine Legislature passed a measure on Tuesday that would place a temporary moratorium on new data center development in the state, sending the bill to Governor Janet Mills for final approval.
The legislation, known as LD 307, targets facilities with electric loads of at least 20 megawatts. Under the bill, state agencies, local governments and quasi-governmental entities would be prohibited from issuing permits or other approvals for such facilities until November 2027.
The bill also establishes a Data Center Coordination Council tasked with studying the potential impacts of data centers in Maine and issuing policy recommendations during the moratorium period.
What the Right Is Saying
Business groups and some Republican lawmakers have criticized the legislation as a barrier to economic growth and job creation. They argue that data centers represent significant investment in Maine's infrastructure.
Senator Thomas Brennan, who voted against the bill, said it sends "the wrong signal to businesses looking to invest in Maine" and called the moratorium "a solution searching for a problem."
The Maine Chamber of Commerce warned that the ban could push potential data center development to neighboring states, losing out on construction jobs and long-term economic benefits. A spokesperson said businesses need "predictable regulatory environments" to make investment decisions.
What the Left Is Saying
Progressive advocates and environmental groups have praised the measure as a cautious approach to managing Maine's energy future. Supporters argue that data centers consume massive amounts of electricity and deserve careful scrutiny before approval.
State Representative Sarah McGowan, who co-sponsored the bill, said the legislation provides "critical time to understand the true impact these facilities would have on our grid, our communities and our climate commitments."
The Maine Environmental Policy Coalition called the bill "a commonsense pause that allows Maine to lead rather than follow" on data center policy, noting that other states are watching the debate closely.
What the Numbers Show
Data centers with loads exceeding 20 megawatts are among the largest energy consumers in any region. A typical 20-megawatt facility can power approximately 15,000 to 20,000 homes.
Maine's current energy grid has faced increasing demand as the state works toward its goal of 100% renewable energy by 2040. The Maine Public Utilities Commission has reported rising concerns about grid capacity.
The bill does not specify how much funding the Data Center Coordination Council would receive or how many staff members it would require. The Legislature's fiscal office is still calculating the cost of the new council.
The Bottom Line
The legislation now goes to Governor Janet Mills, who has not indicated whether she will sign or veto the measure. If signed, Maine would become the first state in the nation to impose a temporary moratorium on data center construction.
The 21-month pause gives lawmakers time to develop comprehensive policy, but critics say it may cost Maine economic opportunities. Both sides agree the Data Center Coordination Council's recommendations will shape future debates about data center regulation in Maine and potentially other states watching the outcome.