Maine Legislature Passes First U.S. Ban on Large Data Centers

Maine lawmakers have approved a bill establishing the first statewide ban on large data centers in the United States, according to Governing. The legislation, known as LD 307, halts approval and construction of data centers with power demands exceeding 20 megawatts until November 2027, while a new council studies their effects on New England’s electric grid and local communities.

The bill passed the Maine House on April 8 and the Senate on April 14, with most Democrats supporting the measure and most Republicans opposing it. It now heads to Governor Janet Mills, who has ten days to sign, veto, or allow the bill to expire without action. Mills has indicated she wants an exemption for a proposed $550 million project in Jay, Maine, but lawmakers rejected the amendment that would have allowed it.

If signed, Maine would become the first U.S. state to restrict large-scale data center development. The moratorium would pause several proposed projects, including those in Jay and Limestone, while allowing smaller facilities under the 20-megawatt limit to proceed. The legislation also directs state officials to identify strategies to prevent higher electricity costs tied to expanding data center operations.

The move comes amid national concern over the rising energy and environmental impacts of data centers supporting artificial intelligence. At least ten other states, including Vermont, New Hampshire, and New York, are considering similar restrictions.