Maine legislature passes nation's first data center moratorium

The Maine legislature passed the nation's first state-level moratorium on new data centers, reports Allison Prang in Bloomberg Law. "The bill, LD 307, which Gov. Janet Mills (D) has 10 days after receiving it to act on, would temporarily bar new data centers with loads of at least 20 megawatts until Nov. 1, 2027."

The bill calls for the creation of a Data Center Coordination Council, which would "provide strategic input, facilitate coordinated state planning considerations and evaluate policy tools to address data center opportunities and related benefits and risks." The Council's responsibilities would include "protecting ratepayers, maintaining electric grid reliability, minimizing environmental impacts and enabling responsible and appropriately sited economic development."

According to Prang, "Many states that tried to encourage data center development with tax incentives have in some instances paused those types of deal sweeteners or considered imposing restrictions around data center development." Cities are also using tax incentives and zoning rules to regulate data centers. Tulsa, Oklahoma passed a nine-month moratorium, and Port Washington, Wisconsin voters approved a referendum that requires citizen approval for data centers that receive tax benefits.