Maine lawmakers approve first-in-nation temporary ban on data centers

Key Points:

• The Maine Legislature passed LD 307, a bill temporarily banning new data center development with electric loads of 20 megawatts or more until November 2027, pending Governor Janet Mills' approval; the measure also establishes a Data Center Coordination Council to study impacts and recommend policies.
• The bill, which could be the first statewide data center ban in the U.S., was passed despite opposition citing potential job creation and tax revenue benefits, especially for economically challenged former mill towns like Jay, which lacks an exemption in the bill.
• Data centers require significant electricity and water resources, raising concerns about increased utility costs and environmental impacts; proponents argue the moratorium allows for better regulation and planning to protect communities.
• A second bill, LD 713, was also sent to the governor, aiming to prohibit new data centers from receiving certain tax incentives and requiring a study on financial benefits for data centers under current state laws.
• The Data Center Coordination Council will include diverse stakeholders and is tasked with balancing economic development with environmental and grid reliability concerns, reporting findings and recommendations by February 2027.