SCOTT DETROW, HOST:
The Maine legislature has approved what could become the first statewide pause on construction of data centers. Across the U.S., data centers face increasing criticism of their impact on electrical costs and the environment. Now, Maine's Governor Janet Mills has not yet said whether or not she will sign the bill. She said she's concerned over one town in the state. We are joined now by Peter McGuire of Maine Public to talk about all of this. Hey, Peter.
PETER MCGUIRE, BYLINE: Hi. Nice to be here.
DETROW: So tell us what this bill would actually do if it does become law.
MCGUIRE: Yeah. So this bill would ban any permits or construction of large-scale data centers for about 18 months until November 2027. And in the meantime, this data center coordinating council of government officials and electric utilities, consumer advocates, environmental groups and other interested parties would put together guidelines for developing these facilities in the future. You know, these can be the size of a couple football fields, and the bill really aims to protect people from rising energy costs, minimize any environmental harms, and whatever problems for the electric grid that these data centers can bring.
DETROW: Now there's one interesting factor here in that there aren't that many data centers in Maine yet, right? This is not directly an issue as of right now.
MCGUIRE: Yeah. I mean, until the last six months or so, AI data centers weren't really on the radar in Maine, especially compared to places where it's really big business, like northern Virginia. But the couple that have been proposed met with, like, really intense local opposition. And after lawmakers started talking about a ban, we found out that there were more centers in the works. Because developers said, you know, hey, if you pass this, it's going to kill our project. So I talked with Dana Colihan from the community organizing group Slingshot, and she says people are upset because they're often not told about these developments until it's too late in the planning stages.
DANA COLIHAN: Steamrolling into communities is a part of the playbook that these industries are using around the country. And, you know, what else is in the works that residents don't know about in Maine? You know, let's put a pause on unregulated development before communities get wrecked.
DETROW: Now, this could be the first statewide pause, but it's worth pointing out this is not the first place where states or cities are pushing back against data centers. How does this all fit into the broader national picture?
MCGUIRE: Yeah. I think Maine is part of a national backlash to these facilities. You know, at first, they were attractive to local officials because they brought in tax revenue and some jobs. You know, and the tech industry argues they're using them to power the internet and develop AI. But now people are starting to see their electric bills go up because these centers use so much electricity, along with concerns about their massive water use, some light and noise pollution.
And states and communities are now considering new regulations or even banning data centers. And there are a few small towns around the country that have scheduled public votes on it in the fall. And Virginia, which is the epicenter of this industry, is debating ending tax breaks for data centers. And bipartisan opposition just seems to be getting louder and more visible.
DETROW: I mentioned in the beginning that it's not clear what Maine's Governor, Janet Mills, who's a Democrat, is going to do - sign it or veto it. What's going on there? What are her concerns?
MCGUIRE: So the twist here is one data center plan in a town called Jay in western Maine that kind of illustrates the opposing views on these facilities. It's a $550 million investment on the site of a former paper mill that closed down a few years ago and eliminated a lot of jobs. This is a pretty rural part of the state, and local leaders say they want the taxes and jobs this center could bring. But the developer says even a temporary ban would kill the project. And that's one of the concerns with this bill that Patrick Woodcock has. He's the CEO of the Maine State Chamber of Commerce.
PATRICK WOODCOCK: It's sort of creating a moratorium against a bit of a boogeyman that we have not seen proposed, while a very modest project that has the support of local communities could be the collateral damage.
MCGUIRE: Mills has said she wants this project to go forward. So we're waiting now to see what happens next. The governor has until Saturday to sign or veto the bill or let it become law without her signature.
DETROW: That's Peter McGuire of Maine Public. Thanks so much.
MCGUIRE: Thank you. Transcript provided by NPR, Copyright NPR.
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