In a move that halted an effort to make Maine the first U.S. state to impose a moratorium on large new data centers, Democratic Governor Janet Mills vetoed a bill that had won approval from the state legislature last week. The governor said the measure would have disrupted jobs tied to a project already underway.
The legislation would have frozen permits and approvals for data centers drawing more than 20 megawatts of power until October 2027. During that pause, a state-appointed council would have been tasked with analyzing the potential impacts of such facilities on Maine's local electric grid, residential electricity bills, air quality and water resources.
Lawmakers and observers had framed the Maine proposal as a test case amid rising local opposition to large facilities that help power Washington's AI competition with Beijing. Although the bill cleared the legislature, the governor concluded the moratorium risked interrupting employment connected to an active project in the state and issued a veto.
Beyond Maine, at least a dozen states have introduced legislation this year aimed at pausing, studying or otherwise restricting data center development. The following is the most recent list of U.S. states that have had bills targeting data centers introduced in their legislatures, along with short descriptions of those measures:
- Georgia - HB 1012: Bars counties and cities from issuing permits, licenses or certificates for the construction or development of new data centers until March 1, 2027, with an exception for approvals issued before July 1, 2026.
- Maryland - HB 120: Prohibits the construction of new data centers unless the General Assembly enacts legislation related to co-location with new or existing power generation (including natural gas, nuclear or small modular reactors, or SMRs).
- Michigan - House Resolution 240: A statewide moratorium that calls for a temporary pause on state incentives for data centers.
- New Hampshire - HB 1265: Prohibits the construction of a new data center anywhere in the state for one year from the act’s effective date and forms a committee to study the environmental impacts of data centers.
- Minnesota - SF 4298: Bars state and local governments from issuing permits for data centers until a year after the Public Utility Commission submits a report on data center development scenarios in the state.
- New York - S9144: Imposes a statewide moratorium on permits for new data centers and directs the Public Service Commission to come up with a plan to minimize their impact on electricity and gas rates.
- Oklahoma - SB 1488: Imposes a moratorium on building new data centers until November 1, 2029, and tasks the Oklahoma Corporation Commission with studying the impact on water supply, utility rates, property values and site locations.
- South Carolina - H 5286: Bars state and local governments from granting permits, approvals or incentives for new data centers until January 1, 2028.
- South Dakota - SB 232 / HB 1301: Sets a one-year moratorium on the construction or expansion of hyperscale data centers. The House bill imposes a moratorium while also addressing cost/risk allocation tied to electricity usage by data centers.
- Vermont - S 205: Creates a temporary moratorium through July 2030 while regulators study impacts and recommend a regulatory framework.
- Virginia - HB 1515: Bars localities from granting final approvals for rezonings or special permits for new data centers until specified grid-interconnection conditions are met.
- Wisconsin - LRB-6377/1: Creates a statewide moratorium on data centers by prohibiting the operation of a data center unless the legislature first enacts rules - such as a statewide planning authority and explicit bans on shifting data center energy and water costs onto residential customers.
The bills vary in scope and duration: some call for year-long pauses, others extend through 2027, 2029 or 2030, and several pair moratoria with directed studies or planning requirements. Common themes in the proposals include concerns about the strain large facilities may place on the local electric grid, potential upward pressure on electricity bills for households, and environmental considerations tied to air and water resources.
Supporters of moratoria argue these pauses allow states to assess cumulative impacts and design regulatory frameworks. Opponents, including officials citing Maine's veto, caution that abrupt restrictions can disrupt projects and jobs already underway.
As legislation moves through statehouses, the mix of temporary prohibitions, directed studies and conditions on approvals reflects a broader set of policy tools lawmakers are considering to balance economic development, infrastructure capacity and community impacts.