Maine set to become first state with data center ban

Maine is poised to implement the first statewide ban on data center construction, a move that could clear the way for other states to adopt similar measures and pump the brakes on a growing industry.

Lawmakers in Maine greenlit the text of a bill this week to block data centers from being built in the state until November 2027. The measure, which is expected to get final passage in the next few days, also creates a council to suggest potential guardrails for data centers to ensure they don’t lead to higher energy prices or other complications for Maine residents.

While the bill has garnered bipartisan support, it’s faced fierce opposition from tech groups and businesses worried that even a short delay in construction would set the state back.

Glenn Adams, business development director for Sargent Corporation said anywhere that puts a pause on data centers, even a temporary one, will fall behind. The Maine-based building company is constructing data centers in Virginia and North Carolina.

“Things are going so fast. There’s a race against other countries,” he said in an interview. “If Maine says ‘no,’ we’re saying no to all these companies, to potential developers and investors, and they can quite quickly go somewhere else.”

While Maine hasn’t attracted a major data center project, several smaller ones are under construction or in early planning stages. Even without major investment, data centers and their potential impacts are becoming a flashpoint in politics across the U.S. as thousands of new projects are underway as part of the AI boom.

A fear of increasing electricity prices is a particular pain point in Maine, which already has one of the highest rates in the U.S., according to the U.S. Energy Information Administration.

Seth Berry, executive director Our Power, a nonprofit focused on energy in Maine, said a pause would give time to find ways to increase energy supply in the state and prevent costs from rising further.

“If data centers are allowed to increase those costs even more, and we aren’t prepared for the data center gold rush, it could really be devastating especially for our lower and working class populations,” he said.

Berry said even if companies pledge to build their own power supply along with data centers, it likely wouldn’t be enough to offset an increase in electricity costs.

But business have pushed back, saying more companies paying for the cost of electricity in the state will take the burden off of homeowners. Maine has lost much of its pulp and paper industry in the last few decades, leaving a gap data centers could fill said Maine Chamber of Commerce President and CEO Patrick Woodcock.

Woodcock also said Maine already has a “significant” permitting process to ensure new data centers don’t blow up electric bills or harm the environment.

“We have a robust regulatory process, and that process can be applied…