Maine Passes First Statewide Moratorium on Large Data Centers

The Maine Legislature passed bill LD 307 on April 14, 2026, enacting the first statewide moratorium on large-scale data centers in the United States. The law freezes the development of new facilities requiring more than 20 megawatts of power until late 2027. The pause allows a newly created 13-member Data Center Coordination Council to study the infrastructure's impact on electricity costs, water consumption, and grid stability before providing policy recommendations by February 2027. Lawmakers also passed bill LD 713, which restricts certain state business tax exemptions and incentives for new data centers.

Janet Mills, the Governor of Maine, has signaled support for the moratorium but has resisted signing the bill without a specific carveout for a $550 million project at a former paper mill in Jay. She argues the exemption is necessary to preserve local jobs, though legislators previously rejected an amendment to include it.

Supporters of the bill, including sponsor Melanie Sachs, describe the move as a proactive step to ensure regulatory frameworks protect ratepayers and the environment. Conversely, the Maine State Chamber of Commerce and the Data Center Coalition argue the ban deters economic investment. This legislative action mirrors growing tensions in other states like Virginia and Georgia, where the AI-driven surge in energy demand has strained electrical grids and led to disputes over tax breaks.