Maine Becomes First State to Block Large Data Centers Until 2027: What’s Next for the U.S.?

Maine has become the first U.S. state to impose a moratorium on the development of large data centers, setting a precedent that other states may soon follow. The Maine House and Senate this week approved LD 307, a bill that prohibits state and local governments from approving new data centers with at least 20 megawatts of electricity demand until October 2027.

The bill now awaits a signature from Governor Janet Mills, who has not publicly stated whether she will sign it into law. The legislation reflects escalating concerns across the country about the energy and water consumption of data centers, as well as their potential economic and environmental impacts.

Maine is one of roughly a dozen states considering legislative action to pause or ban data centers this year. Community groups and policymakers are increasingly vocal about the intrusive development of these facilities, while broader public anxiety grows over the role of data centers in fueling artificial intelligence—a trend that some fear could lead to mass job losses.

Analysts tracking state-level discussions suggest Minnesota and Illinois are likely candidates to pass similar bills, even though Illinois has not yet introduced formal legislation. The issue is gaining traction as U.S. data centers now account for more than 50 gigawatts of electricity demand—a figure that has already doubled the peak demand of the entire New England grid, which serves six states, including Maine.

This demand is expected to surge further as supersized data centers currently in early planning stages come online. The strain on the electricity grid raises critical questions: How will power plants scale to meet this demand? And how can residential ratepayers be protected from soaring electricity bills driven by corporate data center consumption?

Partisan Divide Over Maine’s Data Center Moratorium

The debate in Maine highlights the intersection of this issue with partisan politics. The bill passed the House 79-62 and the Senate 21-13, with Democrats supporting the measure as a necessary step to regulate data centers and opponents, primarily Republicans, warning of economic harm and investment deterrence.

The legislation establishes a special council tasked with evaluating concerns about data centers and recommending new policies to the legislature. Despite Maine’s limited data center presence—with only about 10 sites, none of which are large “hyperscalers” like those sparking backlash in Virginia and Texas—lawmakers see the bill as a proactive measure.

“Let’s just make sure our regulatory framework can meet the moment.”

— State Representative Melanie Sachs, a Democrat and lead sponsor of LD 307

Sachs emphasized the bill’s goal: to use other states’ experiences as “a cautionary tale that Maine could really learn from.”

Opponents Warn of Missed Economic Opportunities

State Senator Matt Harrington, a Republican, was among the bill’s critics. He argued that the moratorium would delay or cancel major projects, including data centers under discussion in Sanford and Jay.

“This is billions of dollars in potential investment in Maine.”

— State Senator Matt Harrington

Governor Mills had previously indicated a desire for the bill to include an exemption for at least one major project, though no such amendment was included in the final version.