First US state faces ban on building new data centers

The US state of Maine is about to become the first to temporarily ban the construction of new data centers. A corresponding bill approved by MPs this week would impose a moratorium until November 2027.

Time for exams

The aim of this is to gain time to examine possible effects on electricity prices and infrastructure, reports the US broadcaster CNBC. The law should also provide for the establishment of a committee that will develop rules for the future operation of such systems. The background is the concern that the rapid expansion, driven by the boom in artificial intelligence, could lead to rising energy costs for consumers. Despite cross-party support, the plan is encountering significant resistance from business.

Companies and industry associations warn that even a temporary pause in construction could set Maine back in competition. “Development is happening extremely quickly, it is a global race,” said a construction industry representative. Investors could quickly turn to other locations.

In fact, Maine has not yet attracted any large data center projects, but several smaller projects are planned or under construction. At the same time, the number of such projects is growing rapidly across the country, especially in states like Virginia and Georgia, where corporations like Meta, Google and Microsoft are investing heavily.

Concern about energy prices

A central point of contention in Maine is the already high electricity prices. Proponents of the moratorium argue that a pause would make it possible to expand energy supplies and prevent cost increases. Critics counter that additional large consumers could also contribute to stabilization because they contribute to the infrastructure costs. The business community also points out that Maine already has strict permitting processes in place to limit environmental and price risks.

A complete halt to construction would therefore be disproportionate. The law has not yet been finally passed. The decisive factor will be the attitude of Governor Janet Mills, who could veto it. She had previously called for certain regions to be exempt from the ban, but was unable to get this passed in parliament. However, she cannot simply ignore MPs either. Because Mills is running for a seat in the US Senate and is dependent on broad support. A possible veto against the moratorium could prove unpopular.