Maine’s legislature has passed the first statewide moratorium on large data centres in the United States. The bill prohibits state agencies and municipalities from approving any facility consuming more than 20 megawatts of power until November 2027.
Why it matters
The moratorium is the sharpest pushback yet against the AI-driven data centre boom that has strained electricity grids and water supplies across rural America. If Governor Mills signs it, other states considering similar restrictions may follow Maine’s lead.
What the bill does
The legislation creates a Data Centre Coordination Council of government officials, energy experts, and community stakeholders. The council must develop policy recommendations for regulating future construction, including guidelines on electricity demand, water use, and local economic impact.
During the 18-month pause, no new data centre over the 20-megawatt threshold can receive permits. The threshold is roughly equivalent to the power consumption of 15,000 homes.
The governor’s dilemma
Mills has until 25 April to act. She had publicly requested an exemption for a proposed data centre at a retired paper mill in Jay, a town that lost hundreds of jobs when the mill closed. The legislature rejected her amendment.
Supporters argue the moratorium gives Maine time to plan rather than react. Food and Water Watch called it “a model for the country.”
Opponents, including industry groups and the town of Jay, say the ban sends a signal that Maine is closed for business. They point to the jobs and tax revenue data centres bring.
What happens next
If Mills vetoes the bill, the legislature would need a two-thirds majority to override. If she takes no action by 25 April, the bill becomes law automatically. At least five other states have introduced similar measures, according to the National Conference of State Legislatures.