Maine Lawmakers Debate One-Year Pause on Large Data Centers

Maine could soon become the first state in the country to temporarily ban large data centers. Lawmakers in Augusta are reviewing a bill that would place a one-year moratorium on new large-scale data center developments while the state studies their impact on the environment, electrical grid, and local communities.

According to WGME, large data centers have become increasingly controversial nationwide because they require significant amounts of electricity and water. Some experts say rapid growth of these facilities could strain Maine’s already expensive power grid and potentially drive up electricity costs for residents and businesses.

“Maine, as you know, has among the highest electricity rates in the country already,” said Anirban Basu, chief economist for the Associated Builders and Contractors. Basu says Maine would be the first state to pass a statewide moratorium, though other states across the East Coast and Midwest are considering similar measures.

However, the proposal is raising concerns for developers already planning projects in Maine. Tony McDonald, who is behind a proposed data center in Jay at the site of a former paper mill, says the moratorium could derail his project, which is scheduled to begin construction in July, the news station reported.

“Our project would be dead,” McDonald said. “This bill has scooped us because we're a data center, but we are nothing like the data centers people are concerned about.”

McDonald argues his facility would actually use less energy and water than the former mill and would help clean up an environmentally challenged site.

Under the proposal, smaller data centers using less electricity would still be allowed. The bill still needs approval from the Maine House and Senate, and Governor Janet Mills has not yet indicated whether she supports the measure.