Maine Could Be First US State to Ban AI Data Center Construction

Maine is poised to become the first U.S. State to implement a statewide moratorium on the construction of new data centers. Both chambers of the state legislature have approved a bill that would block the development of these facilities until November 1, 2027.

The legislation now awaits a final decision from Governor Janet Mills. While the bill has secured bipartisan support, it faces a potential veto because the governor was unable to secure specific exemptions within the text of the bill.

The measure is part of a broader national trend of resistance to the rapid expansion of AI infrastructure. According to a review by Business Insider, 12 states have introduced bills in 2026 attempting to pause data center development. Maine is the only state where such a bill has not stalled or been voted down.

Drivers of the Moratorium

Proponents of the ban argue that the data center industry has moved too quickly and remained too secretive, leaving local communities with little opportunity for public input. Lawmaker Melanie Sachs, a Democrat who sponsored the bill, noted that local permitting for these projects is often nonexistent in rural communities.

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The pause is intended to provide state agencies time to study several critical impacts, including:

• The amount of electricity and water consumed by these facilities.
• The potential for increased energy prices for residents.
• The environmental effects and impacts on public health.
• The strain on local infrastructure and the resulting effect on the local economy.

To address these concerns, the Maine bill also creates a council tasked with suggesting potential guardrails to ensure data centers do not lead to higher utility costs or other complications for residents.

Industry Pushback and Economic Risks

The proposed ban has faced fierce opposition from tech groups and businesses. Critics argue that even a temporary delay could cause the state to lose significant investment to other regions. Glenn Adams, business development director for Maine-based Sargent Corp., stated that developers and investors can quickly move their projects to other locations if a state says no.

The urgency is compounded by a global race for AI infrastructure. While Maine has a smaller data center footprint than states like Virginia or Georgia, interest from Big Tech has increased as the AI buildout spreads across the country. Two data center projects have already been proposed in different Maine communities, including one at the Androscoggin Mill in Jay.

The National Landscape

The tension in Maine mirrors a larger conflict across the United States. The American Edge Project, a tech coalition, reports that You’ll see currently 4,000 data centers in the U.S., with another 3,000 either proposed or under construction. This growth has triggered protests over noise pollution and rising utility bills.

Other states have attempted similar measures with varying results:

• Georgia: A House bill to form a commission to study impacts on the electric grid and water supply never reached a floor vote.
• Michigan: A bipartisan bill to suspend approvals until April 1, 2027, has stalled, and Governor Gretchen Whitmer has indicated opposition to a moratorium.
• New York: Senate Bill S9144, which would halt new permits for three years pending environmental review, remains stalled in committee.
• Virginia: Lawmakers reviewed a moratorium bill but deferred the decision to 2027. The state is currently debating the future of a sales tax exemption for computer equipment that cost the state budget $1.9 billion in the 2025 fiscal year.

Beyond state-level efforts, local governments have taken action. In Michigan, East Lansing approved a six-month moratorium, while Huron County and Delta County approved bans spanning one to three years. In Oklahoma, the city of Tulsa passed a nine-month moratorium, and the Seminole Nation became the first indigenous group to ban data centers in its territory.

The debate has also reached the federal level. On March 25, 2026, Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez introduced the Artificial Intelligence Data Center Moratorium Act. The federal legislation calls for a national pause on development to allow Congress to better understand the impacts of the AI revolution.

Congress is way behind where it should be in understanding the nature of this revolution and its impacts

Senator Bernie Sanders