Lawmakers in Maine this week approved a statewide moratorium on new data centers, the first legislation of its kind in the nation, at a moment when the rapidly expanding artificial intelligence industry is under intense scrutiny.
The fate of the moratorium now rests with Governor Janet Mills, a Democrat in a tough primary race for a United States Senate seat. She has ten days to veto the legislation, sign it into law or allow it to become law without her signature.
At least a half dozen other states are also considering restrictions on how, when and where data centers may be built. Lawmakers are concerned about the facilities’ use of water and electricity, the risks of pollution and the potential to drive up household energy costs, among other criticisms.
The pushback comes as the Trump administration is pressuring states to stay out of regulation of A.I. President Trump has threatened to sue states and withhold funding if they pass laws restricting the industry’s growth.
“We remain in the earliest days of this technological revolution and are in a race with adversaries for supremacy within it,” an executive order signed by Mr. Trump in December said. “To win, United States AI companies must be free to innovate without cumbersome regulation. But excessive State regulation thwarts this imperative.”
Data centers contain computer servers used to store, process and transmit digital data. They require large amounts of electricity to run the equipment and large amounts of water to cool the heat it produces.
The Maine legislation would pause for 18 months approvals of new data centers that require more than 20 megawatts of power; it would also establish a study group to examine the impact of such facilities and recommend legislative guardrails. Separate legislation, also approved, would make data centers ineligible for certain business tax exemptions. Both legislative chambers are controlled by Democrats.
In Maine, a rural state hard hit by mill closures, limiting economic development — even temporarily — is complicated. Before the legislature finalized the measure, Governor Mills said that she would sign it if the pause included an exemption for a proposed data center in the rural town of Jay, which lost more than 200 jobs when its largest employer, a paper mill, shut down in 2023.
The project in Jay, which has been welcomed by local officials, would take over the vacant mill property and tap its existing infrastructure, an approach that proponents said should be treated differently than new construction sites on open land. Developers have said it would use a tiny fraction of the water once used by the mill, with no wastewater discharge to the Androscoggin River, while providing millions of dollars in tax revenue.
“I have to believe that sites like ours are where you would want” data centers, said Shiloh LaFreniere, the town manager in Jay, which has a population of 4,680 people and sits northwest of Augusta. “It’s not creating any impact that wasn’t there already.”
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An amendment that would have allowed projects like Jay’s to proceed was defeated in the House, 115 to 29. Construction had been slated to begin in July.
Melanie Sachs, a Democratic state representative from Freeport who sponsored the data center legislation, said she understood the concerns in Jay; she grew up nearby and her father worked in its mill. She said the legislation would provide for a thoughtful process to ensure that developments are safe for residents. It would also provide clarity to data center operators about their obligations.
“We have evidence from other states telling us to plan carefully, because of negative impacts including noise, light, emissions, spikes in the power grid,” she said. “This bill is to make sure we meet the moment.”
In California, legislators enacted regulations for A.I. companies last year. Gov. Gavin Newsom, a Democrat, followed up last month with a groundbreaking executive order that added new requirements for privacy and transparency.
But in New Hampshire, where the legislature is under Republican control, lawmakers last month rejected a proposed one-year moratorium on data centers. In Vermont, the Democratic-controlled legislature is still weighing precautions.
Gov. Maura Healey of Massachusetts, a Democrat, has shown openness to the industry, recently telling business leaders that the state needs to build A.I. infrastructure to drive economic innovation.
As state leaders debate their options, public opinion polls show widespread skepticism about artificial intelligence, even among younger generations.
Still, the growth of A.I. is inevitable, and data centers will be built somewhere, said Tony McDonald, one of the developers of the project in Jay.
“People are afraid of A.I. — I’m afraid of A.I. — but guess what, it’s coming,” he said.
Ms. LaFreniere, the town manager in Jay, said the paper mill’s closure has rippled through the region, hurting loggers who had supplied it and small family businesses that had served its workers. Critics who say data centers do not hire enough workers underestimate the depth of need in places like Jay, she said.
In a small community in rural Maine, even a few dozen jobs can be significant, Ms. LaFreniere said. “We don’t have a lot of new employers coming in.”
Jenna Russell is the lead reporter covering New England for The Times. She is based near Boston.
The post The First Statewide Ban on Data Centers Is on the Verge of Becoming Law appeared first on New York Times.
