Landmark data center moratorium passes Maine Legislature

By Kaitlyn Budion

Lawmakers have given final approval to a moratorium on data centers larger than 20 megawatts — the first statewide ban of its kind in the country.

“What we’re talking about here is an ability for us to absorb and understand the impact of data centers potentially on the State of Maine,” Sen. Mark Lawrence (D-York) said Wednesday ahead of the Senate vote. “The states that have had data centers come in have had tremendous impacts.”

The bill, LD 307, bans data centers larger than 20 megawatts until November, 2027. It also creates the Maine Data Center Coordination Council, and instructs the council to provide strategic input, facilitate planning considerations and evaluate policy tools to address data center opportunities.

The bill was passed in both chambers this week, and is now awaiting funding on the special appropriations table.

“My point here is not that data centers should never happen,” said Sen. Nicole Grohoski (D-Hancock) Wednesday. “The point is we do not have the correct regulatory regime on the books to ensure that a decision like this isn’t neutral, at a minimum, or positive for everyone that would be affected by that decision.”

Discussion in both the Senate and Maine House of Representatives focused on the impact on proposed data center projects, primarily one in Jay and another in Sanford. Lawmakers volleyed back and forth on the potential benefits to a former mill town like Jay, and possible negative impacts to the surrounding areas. They also considered an amendment that would have created an exemption process to the moratorium that was ultimately rejected by both chambers.

“I’m not going to support something that doesn’t support business, the expansion of business in the State of Maine, especially in a community that’s dying for commerce and to get back on its feet,” said Sen. Jeff Timberlake (R-Androscoggin).

Republican lawmakers also raised concerns that Maine would lose out on economic opportunities, but would still feel the negative impacts when the data centers are built in other states.

“These projects are going to happen whether or not we pass this moratorium,” said Sen. Matt Harrington (R-York). “For those who care about the environment, they will be built in states that use 70% coal power, and we will be the tailpipe for that. These data centers will be built in groves in states that don’t have an economic death wish, and we will receive all the negative environmental impacts of that.”

Rep. Steven Foster (R-Dexter) said in March that any data centers are already subject to environmental and local regulations.

“This moratorium is not needed here in the state of Maine,” Foster said. “A lot of fear has been stoked up about an AI data center being built anywhere in Maine, which is contrary to reality. We would not see the facilities here the size of those being built in other states.”

But Democrats countered that Maine residents can’t afford the potential costs from the projects.

“We’re already seeing a tremendous impact from rising gas prices, rising oil prices, and how that feeds into also rising electric energy prices,” Lawrence said. “We don’t need to add an additional risk on energy costs for Mainers when we have time to reflect on this, study this and do this right.”

Grohoski also pointed to the local opposition to data centers, and said if the state doesn’t take the time to build intentional regulations, residents may just continue to stop projects at the local level.

“So I think if we do think that Maine is a place where we would like data centers at some point, if we don’t figure out how to do it right, they’re not going to happen anyhow, because people are concerned that we have not done our jobs to protect them,” Grohoski said.

In March, Rep. Melanie Sachs (D-Freeport) argued that the moratorium is not against innovation.

“Maine has always been a place that embraces new industries and new ideas, but we are also a state that understands the value of stewardship of our land, our water, our communities and our long-term future,” she said.