Maine on Tuesday became the first US state to call for a temporary moratorium on the construction of large data centers, as power-hungry facilities driven by AI demand are putting a strain on local electrical grids.
A bill passed both legislative houses and has now been sent to Democratic Governor Janet Mills. If she signs it, it would become the first statewide moratorium affecting the fast-growing artificial intelligence (AI) industry.
The bill’s sponsor, Representative Melanie Sachs, said, “People and communities across the state are asking the legislature to take action and temporarily halt these projects, which could have a significant impact on ratepayers, our electric grid, and our environment.”
“This bill positions Maine to respond consciously and responsibly to a rapidly evolving industry.”
Residents oppose data centers
If signed into law, the bill would pause approvals for data centers requiring more than 20 megawatts of power until the end of 2027 while a state council studies their impact on the power grid, costs and the environment.
Supporters of the bill say the move is a response to growing concerns that energy-intensive data centers could put a strain on local power systems, increase household electricity bills and consume large amounts of land and water.
According to the U.S. Energy Information Administration, Maine has seen energy costs rise in recent years, leading to increased public opposition.
A recent survey found that 65% of Americans oppose building a data center in their community.
Governor Mills previously pushed for an exemption for a small project that would use existing infrastructure with minimal impact on the grid or energy bills.
Location data centers attract lawmakers’ attention
Currently, there are no major data centers in Maine, although some proposals have emerged in recent weeks, Rep. Sachs said.
Similar proposals are currently being discussed by 11 other US states.
In February, residents of New Brunswick, New Jersey rallied to veto plans for a data center, citing energy consumption, environmental impact and real estate footprint.
Last month, Congressmen Bernie Sanders and Alexandria Ocasio-Cortez introduced legislation to halt all construction on data centers until Congress passes AI safety legislation.
Senators Josh Hawley and Richard Blumenthal also introduced measures addressing the impact of data centers on energy costs.
Edited by: Darko Janjevic