Lawmakers have given final approval to a moratorium on data centers larger than 20 megawatts — the first statewide ban of its kind in the country.

“What we’re talking about here is an ability for us to absorb and understand the impact of data centers potentially on the State of Maine,” Sen. Mark Lawrence (D-York) said Wednesday ahead of the Senate vote. “The states that have had data centers come in have had tremendous impacts.”

The bill, LD 307, bans data centers larger than 20 megawatts until November, 2027. It also creates the Maine Data Center Coordination Council, and instructs the council to provide strategic input, facilitate planning considerations and evaluate policy tools to address data center opportunities.

The bill was passed in both chambers this week, and is now awaiting funding on the special appropriations table.

“My point here is not that data centers should never happen,” said Sen. Nicole Grohoski (D-Hancock) Wednesday. “The point is we do not have the correct regulatory regime on the books to ensure that a decision like this isn’t neutral, at a minimum, or positive for everyone that would be affected by that decision.”

Discussion in both the Senate and Maine House of Representatives focused on the impact on proposed data center projects, primarily one in Jay and another in Sanford. Lawmakers volleyed back and forth on the potential benefits to a former mill town like Jay, and possible negative impacts to the surrounding areas. They also considered an amendment that would have created an exemption process to the moratorium that was ultimately rejected by both chambers.

“I’m not going to support something that doesn’t support business, the expansion of business in the State of Maine, especially in a community that’s dying for commerce and to get back on its feet,” said Sen. Jeff Timberlake (R-Androscoggin).

Republican lawmakers also raised concerns that Maine would lose out on economic opportunities, but would still feel the negative impacts when the data centers are built in other states.

“These projects are going to happen whether or not we pass this moratorium,” said Sen. Matt Harrington (R-York). “For those who care about the environment, they will be built in states that use 70% coal power, and we will be the tailpipe for that. These data centers will be built in groves in states that don’t have an economic death wish, and we will receive all the negative environmental impacts of that.”

Rep. Steven Foster (R-Dexter) said in March that any data centers are already subject to environmental and local regulations.

“This moratorium is not needed here in the state of Maine,” Foster said. “A lot of fear has been stoked up about an AI data center being built anywhere in Maine, which is contrary to reality. We would not see the facilities here the size of those being built in other states.”

But Democrats countered that Maine residents can’t afford the potential costs from the projects.

“We’re already seeing a tremendous impact from rising gas prices, rising oil prices, and how that feeds into also rising electric energy prices,” Lawrence said. “We don’t need to add an additional risk on energy costs for Mainers when we have time to reflect on this, study this and do this right.”

Grohoski also pointed to the local opposition to data centers, and said if the state doesn’t take the time to build intentional regulations, residents may just continue to stop projects at the local level.

“So I think if we do think that Maine is a place where we would like data centers at some point, if we don’t figure out how to do it right, they’re not going to happen anyhow, because people are concerned that we have not done our jobs to protect them,” Grohoski said.

In March, Rep. Melanie Sachs (D-Freeport) argued that the moratorium is not against innovation.

“Maine has always been a place that embraces new industries and new ideas, but we are also a state that understands the value of stewardship of our land, our water, our communities and our long-term future,” she said.

A group of Democratic state lawmakers on Thursday announced a proposal to put a moratorium on data center construction in Wisconsin as communities across the state grapple with local resistance to the development of hyperscale AI data centers. 

Debates around data centers have become increasingly tense in recent months as residents of communities including Mount Pleasant, Mount Horeb, Beaver Dam, Port Washington and Janesville have rallied opposition to  the approval of data centers by local officials. 

While officials in these communities are often tempted by the promise of increased property tax revenue from the facilities, residents have raised objections to their local representatives ceding local land to multibillion-dollar tech companies, the massive amounts of energy and water needed to operate the large data centers and the related effects on local utility rates and the environment to produce all the power.

Several pieces of legislation to regulate data center construction have already been proposed in the Legislature. In January, Assembly Republicans passed a bill that would establish some regulations, but Democrats said it didn’t do enough to prevent electricity costs from being passed on to regular consumers and included a provision that would stymie renewable energy development in the state. 

With just days left before the Legislature ends its work for the session next week, a group of Democratic lawmakers rolled out a proposal that would pause data center construction until “all of the questions that you have, that you have been asking your local mayors, you have been asking your local legislators, you have been asking these data centers, that all of those are actually answered,” Sen. Chris Larson (D-Milwaukee) said at a press conference Thursday afternoon with local data center activists. 

The bill defines a data center as “a facility having a primary purpose of storing, managing, and processing digital data and that has at least 5,000 servers, occupies at least 10,000 square feet, or has an electricity demand of at least 100 megawatts.”

The bill wouldn’t allow the construction of any data centers in the state until the state establishes a data center planning authority; prohibits energy and water costs from being shifted to residential utility customers; creates a “land and community funding mechanism”; eliminates state and local financial subsidies for data centers; mandates public reporting of data center energy and water use; creates data center-specific pollution regulations; requires that 100% of the energy produced for data centers be renewable; requires that data center construction projects pay prevailing or collectively bargained wages; restores planning authority to the Public Service Commission; prohibits non-disclosure agreements between data centers and government entities and creates an enforcement and penalty structure for data centers that violate regulations. 

“The intent is not to permanently prohibit data centers, but to ensure that any future development is responsible, transparent, and does not impose additional financial burdens on Wisconsin households,” a co-sponsorship memo on the proposal states. “Wisconsinites should not be asked to shoulder higher utility costs while large new energy users operate without clear rules, accountability, or public oversight. This bill provides the Legislature with the time and authority necessary to establish a fair and comprehensive framework that protects ratepayers, workers, and local communities before large-scale data centers are allowed to move forward.”

On Thursday, a few dozen people gathered outside the state Capitol to protest against data center construction before meeting in a hearing room for a news conference and panel discussion. Rep. Francesca Hong (D-Madison), one of the several Democrats running in the primary for governor, said at the press conference that the data center proposals have galvanized anti-corporate views in communities of all political stripes. 

“This is about community power and returning community control to folks all across the state,” Hong said. “I am so incredibly grateful because I have not seen this type of bipartisan opposition to corporate control. I have not seen this type of bipartisan support for ensuring that we protect our natural resources. Our natural resources are not for sale. Our health is not for sale. Our shared future depends on all of us fighting right now to ensure that we are holding AI data centers accountable.”