The Maine State Legislature has approved a first-of-its-kind temporary ban on large data centers. Whether or not it will receive a signature from Gov. Janet Mills (D), however, remains to be seen.
At an event in Bangor last week, the governor reportedly told members of the press that an exemption for the $550 million project at the former Androscoggin paper mill in Jay was necessary to earn her support.
“The people of Jay need those jobs, with appropriate guardrails on preserving water resources, electricity resources, local generation, and all those things,” said Gov. Mills.
Such an exception, however, was not included in the final draft of the bill passed by lawmakers Tuesday.
Under the approved law, no data centers with a load of 20 megawatts or more may be approved until November 1, 2027.
This bill would also lead to the establishment of a Maine Data Center Coordination Council, responsible for “provid[ing] strategic input, facilitat[ing] coordinated state planning considerations, and evaluat[ing] policy tools to address data center opportunities and related benefits and risks to the State.”
By February 1, 2027, the Council would be required to submit a report detailing its findings and any recommendations.
Their work would be supported by a $95,000 appropriation.
Mills’ office did not respond to a message from Maine Public sent on Monday of this week inquiring whether or not she planned to veto the measure.
Members of the Energy, Utilities and Technology Committee were divided over the bill, with some supporting an alternative version of the bill and two recommending against its passage altogether.
While the alternate legislation still would have enacted an 18-month ban on data center construction, it also would have explicitly blocked financial awards or economic benefits from being conveyed to such projects during this same time period.
Votes in the House and Senate to accept the committee’s majority report came down along nearly partisan lines, with primarily Democrats supporting the bill and mostly Republicans opposing it.
Although Maine is the first state to have passed such a measure, twelve other states are currently considering similar proposals to put a pause on data center development.
In testimony introducing this bill back in February, bill sponsor Democratic Rep. Melanie F. Sachs stated that the goal of this pause is “to protect ratepayers, support local communities, respect our environmental values, evaluate grid capacity and reliability, review best practices and allow the state to consider economic opportunities in a thoughtful, collaborative manner.”
According to Rep. Sachs, data centers for artificial intelligence (AI) represent a “complex policy challenge” for the state.
“These facilities are increasingly drawn to locations with available land and strong connectivity — qualities that Maine is well positioned to provide,” she said. “At the same time, if not thoughtfully planned and coordinated, AI data centers can place extraordinary demands on electric infrastructure, natural resources, and host communities.”
The Maine Policy Institute (MPI), a nonpartisan nonprofit think tank, offered testimony in opposition to the measure, arguing that the state does not need more “top down energy planning.”
“Maine ratepayers already pay some of the highest electricity rates in the nation, in part due to government mandates that prioritize carbon goals over affordability and reliability,” MPI said.
“AI data centers are, by nature, energy-intensive,” the think tank continued. “If Maine wants to attract them, we must offer not only reliable infrastructure, but also competitive energy pricing.”
MPI also took issue with the creation of another state-level planning council.
LD 307 is now on the governor’s desk awaiting action from Mills. She can either sign the bill, veto it, or allow it to become law without her signature.
Click Here for More Information on LD 307
Disclaimer: The Maine Wire is a project of the Maine Policy Institute.
Why have businesses in Maine? Everything is free.
This is a local issue, not a state issue. And since when did democrats care about the environment? I know when, when they could participate with the grift.