First-ever moratorium on AI data centers passes Maine legislature

Maine is on the verge of becoming the first state in the nation to slam the brakes on energy-hungryAI data centers, as lawmakers push back against tech giants over fears of higher power bills, strained grids and environmental impact.

The measure, now headed to Democratic Gov.Janet Mills, would pause approvals for data centers requiring more than 20 megawatts of power until October 2027, while a state-appointed council studies their impact on the power grid, energy bills and the environment.

Thelegislation passedthe state’s Democrat-controlled House 79-62 and Senate 21-13, marking one of the most aggressive moves yet against the rapid expansion of data centers tied to artificial intelligence and Big Tech.

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Supporters say the pause is needed to protect residents from the massive energy demands of so-called “hyperscale” facilities, which can consume as much electricity as small cities.

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The Douglas County Google Data Center complex is seen in Lithia Springs, Ga., on March 6, 2026.(Mike Stewart/AP)

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“It’s not that there’s no place for data centers in Maine,” Democratic Rep.Melanie Sachs, who sponsored the measure, told The Associated Press.“Frankly, the tradeoffs have not been shown to be of benefit to our ratepayers, water usage or community benefit in terms of economic activity.”

Opposition to data centershas been building nationwide as communities raise alarms about the strain on power grids, higher electricity bills and heavy water use.Analysts have warned that parts of the U.S.grid could face reliability issues in the coming years if demand continues to surge.

In February, Sens.Josh Hawley, R-Mo., and Richard Blumenthal, D-Conn., introduced a bill aimed at ensuring theelectricity costs of data centersare not passed on to American consumers.

As AI expansion strains the grid, a new proposal would require tech firms to fund their own power needs.(Sameer Al-Doumy/AFP)

At least 11 other states are considering restrictions like Maine’s, but Maine’s bill is the first to pass both legislative chambers, potentially setting a precedent.

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Critics argue the move could drive away investment and jobs.

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“We think that these data centers could bring good jobs, good opportunities to these regions,” Montana Towers, a policy analyst with the free market Maine Policy Institute, told the AP.“And a lot of these concerns about them are luddite in nature.”

A car drives past the Digital Realty Data Center building in Ashburn, Virginia, on March 17, 2025.(Leah Millis/Reuters)

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The Trump administration has backed data center expansion as critical to competing with China in artificial intelligence, even as it recently pushed tech companies tocommit to covering the costof new power generation needed to run their facilities.

Mills has not saidwhether she will sign the bill, though she has sought an exemption for a smaller project already underway that would reuse existing infrastructure.

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If enacted,Maine’s moratoriumwould serve as a test case for how states balance economic growth against the mounting energy demands of the AI boom.

The Associated Press and Reuters contributed to this report.