Maine is preparing to enact a groundbreaking law that would impose a statewide moratorium on the construction of large data centers, making it the first state in the U.S. to do so. This decision comes as lawmakers passed a bill that will suspend new approvals for data centers that require 20 megawatts or more of power until approximately October 2027.
The bill, which is awaiting the signature of Governor Janet Mills to be enacted, aims to address the increasing demand for data center capacity driven by artificial intelligence (AI) advancements. If signed into law, it will prevent state and local agencies from issuing permits for such large facilities, significantly impacting enterprise infrastructure planning during a time of rapid technological growth.
State Representative Melanie Sachs, the bill's sponsor, emphasized the need for careful planning in her statement: “AI data centers are increasingly drawn to locations with available land and strong connectivity, qualities that Maine is well-positioned to provide. But if these centers aren’t thoughtfully planned and coordinated, they can place extraordinary demands on electric infrastructure, the surrounding environment, and host communities.”
According to a report from the Congressional Research Service in January 2026, new hyperscale data centers can have capacities ranging from 100 megawatts to 1,000 megawatts, which is comparable to the electricity needs of 80,000 to 800,000 homes. The moratorium's requirement of a 20 megawatt power threshold encompasses nearly every large data center currently in the planning or construction phases.
Details of the Moratorium Bill
In addition to the permit freeze, the legislation establishes the Maine Data Center Coordination Council. This 13-member council, chaired by the Commissioner of Energy Resources, is tasked with submitting a strategy report to the governor by February 1, 2027. The council's responsibilities include protecting ratepayers, maintaining grid reliability, minimizing environmental impacts, and facilitating what the bill describes as “responsible and appropriately sited economic development.”
Governor Mills has advocated for an exemption for a specific $550 million project at the former Androscoggin paper mill in Jay, claiming it would utilize existing infrastructure without straining the power grid. However, lawmakers have rejected this exemption.
As of now, Mills’ office has not responded to requests for comments regarding the bill's prospects.
Wider Context of Data Center Legislation
Maine's moratorium is part of a broader trend, with at least 12 other states considering similar legislation. Legislative tracking firm MultiState reports that over 300 data center-related bills have been filed across more than 30 states in the current session. The predominant concern among these states is the rising energy costs associated with data centers, which the U.S. Department of Energy predicts could consume up to 12% of the nation's electricity by 2028.
On the federal level, Senators Bernie Sanders and Alexandria Ocasio-Cortez introduced the AI Data Center Moratorium Act on March 25, aiming to impose a nationwide freeze on new data center constructions until Congress passes AI safety legislation. In contrast, the previous administration took a different approach. On March 4, leading tech companies, including Amazon and Google, signed the White House’s Ratepayer Protection Pledge, committing to fund their own power generation to avoid transferring costs to consumers. However, this pledge lacks penalties or assurances for compliance.
Implications for Enterprises and IT Infrastructure
The availability of power is rapidly becoming a critical factor in determining where data centers can be established. Maine's moratorium further intensifies this challenge. Sanchit Vir Gogia, chief analyst at Greyhound Research, noted, “Maine’s approach reflects a different mindset — instead of relying on assurances, it creates space to pause and examine the situation properly.” He added that voluntary pledges from corporations do not guarantee accountability or clear outcomes, leaving policymakers with unresolved questions.
Gogia further explained that the legislation indicates a significant shift in how site selection for data centers must be approached. “It is no longer enough to ask where power exists. The real question is whether it can be delivered when needed,” he stated. For CIOs managing long-term colocation contracts and AI infrastructure projects, the risks associated with power availability are often underestimated. “Capacity can still be contracted, but its delivery may depend on factors still in motion — grid upgrades, approvals, equipment timelines,” he advised. He encourages CIOs to incorporate geographic diversity and contract flexibility into their infrastructure planning to mitigate potential risks.
If Governor Mills signs the bill into law, Maine will be the first state to implement such restrictions on data center construction. Should she choose to veto it, the measure would return to the legislature, where the current voting margins indicate it could withstand an override. A decision from the governor is anticipated in the coming days.
Source: Network World News