Maine is on track to become the first state to halt major new data-center construction, as officials and residents worry the artificial intelligence boom could drive up electricity costs and strain the power grid.
A bill moving through the legislature would ban major new data-center projects until November 2027, giving the state time to study the impact on the environment and electricity supply.
The proposed freeze would apply to projects using at least 20 megawatts of power — enough energy for more than 15,000 homes.
The measure passed the Democrat-controlled Maine House last month with support from a few Republicans and is expected to clear the Senate. Gov. Janet Mills, a Democrat, has said she supports a moratorium.
Maine already has some of the nation's highest residential electricity prices, and state officials fear a surge in data-center demand could send costs even higher.
The fight is being closely watched nationwide as lawmakers in at least 10 other states consider similar steps over concerns about local power sources, environmental impacts, and rising rates.
The debate over AI's effect on the economy and energy costs is becoming a larger political issue ahead of this year's midterm elections.
"I think Maine is the canary in the coal mine," Anirban Basu, chief economist for Associated Builders and Contractors, told The Wall Street Journal. "Maine will be the first of many states to have such moratoria."
Temporary bans or restrictions have also been proposed in New York, South Carolina, Oklahoma and other states.
In Ohio, activists are gathering signatures to place a statewide ban on large data centers on the November ballot. Local pauses have already appeared in parts of Michigan and Indiana, while Denver and Detroit are weighing similar moves.
Developers are growing more cautious as voter opposition spreads. Proposed laws restricting data centers are "a red flag," Tracey Hyatt Bosman, a site selection consultant at BLS & Co., told the Journal.
"They do limit where we are looking," she said.
Tony McDonald, who is developing a data center in Jay, Maine, said the moratorium could derail projects already in motion.
"All of a sudden we've been caught in this dragnet," he told the outlet.
Some Maine proposals have focused on former industrial sites, including closed mills. One project would place a $415 million underwater data center off the coast.
While the Maine moratorium bill could still face changes during the amendment process, some state political operatives believe it is all but certain that some version will ultimately become law.
"That's the political reality," Tony Buxton, a climate and energy attorney at Preti Flaherty, told the Journal. "There is a very strong voter fear of data centers and AI."
Mills has said she would support the moratorium if it includes an exception for the Jay project.
"The project is expected to bring much-needed jobs, economic activity and tax revenue to the region," a spokesman for Mills said.
Nicole Weatherholtz ✉
Nicole Weatherholtz, a Newsmax general assignment reporter covers news, politics, and culture. She is a National Newspaper Association award-winning journalist.
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