Maine Set to Become First State to Halt New AI Data Centers
Lawmakers cited rising electricity demand and environmental impacts as AI infrastructure expands.
WASHINGTON, April 3, 2026 – Maine lawmakers are moving to pause new large-scale data center construction, a step that reflects growing concern across states over rising energy demand and who should bear the costs of artificial intelligence infrastructure.
The issue has also drawn attention at the federal level, where President Donald Trump has pushed for large technology companies to cover more of the infrastructure and energy costs tied to data center expansion.
A bill that would pause new data center projects of 20 megawatts or more, enough electricity to power roughly 15,000 to 20,000 homes, until November 2027 has passed the Maine House and is expected to advance in the Senate, where Democrats also hold a majority.
The proposal, first reported by the Wall Street Journal on April 1, 2026, is intended to give the state time to study how rapid data center growth could affect electricity costs, the power grid, and local communities.
Proposed local measures restricting data centers are “a red flag,” Tracey Hyatt Bosman, a site selection consultant at BLS & Co., said in comments reported by the Wall Street Journal. “They do limit where we are looking.”
Maine already has some of the highest residential electricity rates in the country, and lawmakers have warned that energy-intensive data centers could further increase costs for residents.
Data centers consumed about 183 terawatt-hours of electricity in the United States in 2024, more than 4% of total power use and that figure is expected to more than double by 2030.
“I think Maine is the canary in the coal mine,” Anirban Basu, chief economist for the Associated Builders and Contractors, told the Wall Street Journal. “Maine will be the first of many states to have such moratoria.”
Similar proposals have emerged in at least 10 other states, including New York, South Carolina, and Oklahoma, as policymakers weigh limits on new data center development.
At the federal level, Sen. Bernie Sanders, I-Vt., and Rep. Alexandria Ocasio-Cortez, D-N.Y., have proposed legislation to temporarily pause data center construction nationwide.
Supporters of the moratorium argue the facilities place heavy demands on land, water, and electricity, while critics warn restrictions could limit economic development and investment.
Some projects already in development could also be affected. Tony McDonald, a developer working on a data center project in Jay, Maine, said the proposal has created uncertainty. “All of a sudden we’ve been caught in this dragnet,” he said.
Gov. Janet Mills, D-Maine, has expressed support for the moratorium, though her office has indicated it would favor exemptions for certain projects already in progress.
Member discussion