Local Governments Pursue Data Center Bans Amid Federal Push

Local governments in Montana and Maine are implementing restrictions on data center development, citing concerns over infrastructure and community benefit. In Butte, Montana, the Butte-Silver Bow County Commission voted on September 2 to authorize the county attorney to draft a temporary moratorium. Commissioner Michele Shea proposed the pause to allow for public engagement and a thorough evaluation of the environmental and economic impacts of large-scale projects. This action follows a legal battle by the group 406 People First, which is appealing to the Montana Supreme Court to place a data center ballot initiative on the November ballot.

Similarly, the Town of Gorham, Maine, is considering a permanent ban on data centers. Following a temporary moratorium passed in June, town councilors voted unanimously on Tuesday to hold a public hearing to determine if the ban should be made permanent. Gorham officials characterized data centers as out-of-state corporate entities that extract value without providing meaningful local benefits. Other Maine municipalities, including North Berwick, are pursuing similar restrictions after Governor Janet Mills vetoed a statewide moratorium bill earlier this year.

These local movements contrast with federal priorities. President Donald Trump and Vice President JD Vance have advocated for data center expansion to maintain competitiveness with China. Trump warned that communities blocking these facilities will end up backwards and poor.