By Alyssa Lukpat

Maine lawmakers on Tuesday passed a ban on large data-center construction, making it the first state to enact such a measure as communities around the U.S. deal with fallout from the artificial-intelligence boom.

The Democratic-controlled state legislature approved a bill freezing construction of new data centers until November 2027. The pause would give Maine time to assess the risks to the environment and the electric grid. The bill is headed to Democratic Gov. Janet Mills's desk. She has said she would favor of a freeze on data-center construction if it includes an exception for a project already planned in the town of Jay.

Maine's construction freeze applies to data centers with capacities of at least 20 megawatts, which can power more than 15,000 homes. Data centers -- the facilities that house the equipment powering AI and computing systems -- are springing up across the country to fuel AI demand. Many local communities have protested against data-center construction, which tend to be in areas with open land and power connectivity.

Under Maine's bill, the state government would create a council to examine the impact of large data centers on the state and ratepayers. Maine has some of the country's highest residential electricity prices, and elected officials are concerned that a surge in data-center power demand might further inflate costs.

At least 10 other states are advancing similar bills over concerns that power demand from data centers could harm the environment and increase electricity prices. Some local municipalities and counties, including in Indiana and Michigan, have already imposed construction pauses.

AI and its effects on the economy, the environment and energy costs are set to be a top issue in the coming midterm elections. Maine has a U.S. Senate seat in play this November.

Mills, who is term-limited as governor, is running for the Senate seat currently held by Republican incumbent Sen. Susan Collins, who is seeking re-election. Mills is in a Democratic primary race against Iraq war veteran Graham Platner. A representative for Mills didn't immediately respond to a request seeking comment Tuesday.

The Maine legislature passed the data-center bill largely along party lines, though several Republicans also voted for it.

Write to Alyssa Lukpat at alyssa.lukpat@wsj.com

(END) Dow Jones Newswires

April 14, 2026 20:52 ET (00:52 GMT)

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