Eric Isaacson | DigitalVision | getty images
Maine is set to enact the first statewide ban on data center construction, a move that could clear the way for other states to adopt similar measures and put the brakes on the growing industry.
Lawmakers in Maine greenlighted the text of a bill this week to halt the construction of data centers in the state until November 2027. The measure, which is expected to receive final passage in the next few days, also creates a council to suggest possible guardrails for data centers to ensure they do not lead to higher energy prices or other complications for Maine residents.
While the bill has received bipartisan support, it has faced intense opposition from tech groups and businesses, concerned that even a slight delay in construction would set the state back.
Glenn Adams, business development director for Sargent Corporation, said that wherever data centers are put on hold, even temporary, it will be left behind. The Maine-based building company is building data centers in Virginia and North Carolina.
“Things are moving very fast. There is competition against other countries,” he said in an interview. “If Maine says ‘no,’ we are saying ‘no’ to all these companies, potential developers and investors, and they can immediately go elsewhere.”
While Maine has not attracted a major data center project, several smaller ones are under construction or in the early planning stages. Even without major investment, data centers and their potential impacts are becoming a flashpoint in politics across the US as thousands of new projects are underway as part of the AI boom.
The fear of rising electricity prices is a particular problem in Maine, whose rates are already among the highest in the US. According to the US Energy Information Administration.
Seth Berry, executive director of Our Power, a nonprofit focused on energy in Maine, said the pause will give the state time to find ways to increase energy supply and prevent costs from rising further.
“If data centers are allowed to drive those costs up even higher, and we’re not prepared for the data center gold rush, it could be really devastating especially to our lower and working class populations,” he said.
Berry said that even if companies pledged to build their own power supplies for data centers, it would not be enough to offset the increase in electricity costs.
Maine businesses are challenging the potential ban.
But businesses have pushed back, saying more companies paying for power costs in the state would ease the burden on homeowners. Maine has lost a lot of its Patrick Woodcock, president and CEO of the Maine Chamber of Commerce, said data centers could fill a gap that has been lost in the pulp and paper industry over the past few decades.
Woodcock also said Maine already has a “significant” permitting process to ensure new data centers don’t blow up electric bills or harm the environment.
“We have a strong regulatory process and that process can be applied to these data centers,” Woodcock said. “So we certainly think they should be reviewed, that they should go through the state permitting process. But a moratorium is the wrong approach.”
Maine may become the first state to impose a moratorium on the construction of data centers, but it is not the only state considering a pause in construction. Bills have been introduced in at least a dozen states to temporarily halt data center construction, according to National Conference of State Legislatures.
This includes Virginia and Georgia, two data-center hotspots meta, Google, Microsoft And others are building data centers, although the Georgia legislature gave up before it could ban data centers.
All eyes are on Maine Governor Janet Mills
Maine’s bill must go through a few steps before it becomes law, notably whether Gov. Janet Mills will use her veto power.
Mills asked lawmakers to include exemptions for several areas of the state where data center construction can continue. However, an amendment to do so was stalled in the House by 29 to 115.
Complicating Mills’ decision is his campaign to become Maine’s next senator. Mills faces oyster farmer Graham Plattner in the high-profile Democratic primary. Plattner is leading the mills most recent survey By double digits.
Mills’ office did not immediately respond to an email seeking comment.
“Threatening a veto would not be a popular position,” Berry said. “He really needs the support of Maine people right now for his Senate campaign.”