Maine is poised to become the first state to set up giant data center licensing
AI data center regression
Paul Gigot, Kim Strassel, Allyssia Finley, and Jason Riley discuss the growing backlash against AI data centers. Citing environmental concerns, rising electricity prices, and job losses, Bernie Sanders and the AOC introduced legislation to freeze the construction of new data centers nationwide. The panel examines the economic implications and highlights the lack of clear evidence supporting claims of increased energy costs tied directly to data centers.
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Maine is at risk of becoming the first state in the nation to put the brakes on power-hungry AI data centers, as lawmakers push back against tech giants over fears of high energy bills, strained grids and environmental impact.
The measure, now headed to Democratic Gov. Janet Mills, would temporarily suspend licensing of data centers requiring more than 20 megawatts of power until October 2027, while a government-appointed panel examines its impact on the power grid, energy bills and the environment.
The legislation passed the state’s Democrat-controlled House 79-62 and the Senate 21-13, marking one of the most aggressive measures yet against the rapid expansion of data centers associated with artificial intelligence and Big Tech.
Proponents say the moratorium is needed to protect residents from so-called “hyperscale” energy needs, which can consume as much electricity as small cities.
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The Douglas County Google Data Center is seen in Lithia Springs, Ga., on March 6, 2026. (Mike Stewart/AP)
“It’s not that there’s no place for data centers in Maine,” Democratic Rep. Melanie Sachs, who sponsored the measure, told the Associated Press. “In reality, the trade-off has not appeared to benefit our taxpayers, water use or public benefit in terms of economic activity.”
Opposition to data centers has been building across the country as communities raise concerns about strain on power grids, high electricity bills and high water consumption. Analysts have warned that parts of the US grid could face reliability problems in the coming years if demand continues to increase.
In February, Sens. Josh Hawley, R-Mo., and Richard Blumenthal, D-Conn., introduced a bill aimed at ensuring that the electricity costs of data centers are not passed on to American consumers.
As the expansion of AI strains the grid, the new proposal would require tech firms to subsidize their energy needs. (Sameer Al-Doumy/AFP)
At least 11 other states are considering restrictions similar to Maine’s, but Maine’s bill is the first to pass both chambers of the legislature, potentially setting a precedent.
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Critics say the move could drive away investment and jobs.
“We think these data centers can bring good jobs, good opportunities to these counties,” Montana Towers, a policy and market analyst at the Maine Policy Institute, told the AP. “And a lot of this concern about them is of a luddite nature.”
A car drives past the Digital Realty Data Center building in Ashburn, Virginia, on March 17, 2025. (Leah Millis/Reuters)
The Trump administration has championed data center expansion as a key to competing with China in artificial intelligence, as it recently forced tech companies to commit to paying the cost of new electricity generation needed to run their facilities.
Mills has not said whether he will sign the bill, although he wants an exemption for a small project already underway to reuse existing infrastructure.
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If approved, Maine’s suspension will serve as a test of how states balance economic growth against the growing energy needs of the AI boom.
The Associated Press and Reuters contributed to this report.
