• A new law blocks approvals for facilities above 20MW until a state review concludes.
  • Eleven other states have considered similar moratorium bills as AI demand strains regional grids.

What happened

Maine lawmakers have approved the first statewide ban on large data centres in the United States, targeting facilities with power demands above 20 megawatts. The measure now awaits the governor’s signature.

The legislation would halt new approvals until late 2027. It also creates a state body to assess impacts on electricity supply, water use and local communities.

The bill passed the House 79–62 and the Senate 21–13 after local opposition grew over proposed projects. Eleven other states are considering similar legislation.

Governor Janet Mills has previously sought an exemption for a redevelopment project at a former paper mill site. Lawmakers rejected that proposal during negotiations.

Maine’s move comes amid a broader US trend. Several states have introduced similar moratorium bills, though most have stalled or failed to pass.

Why it’s important

The ban shifts how states weigh digital infrastructure against local costs. Data centres once symbolised growth and investment. Now they face scrutiny over resource intensity and community impact.

These facilities require large amounts of power and water. In regions with fragile grids, they risk raising costs for households and businesses.

If other states follow, such restrictions could slow deployment of cloud and AI capacity. Operators may shift investment to regions with clearer regulatory paths.

Maine’s review could provide a template for temporary freezes while states build lasting frameworks.

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