Maine became the first state in the US on Tuesday to call for a temporary halt to the construction of large data centers, as the power-hungry facilities driven by AI demand are straining local electric grids.

A bill was passed by both legislative chambers and now heads to Democratic Governor Janet Mills. If she signs off on it, it will become the first statewide moratorium impacting the fast-growing artificial intelligence (AI) industry.

"People and communities across the state have been asking the Legislature to take action and temporarily pause these projects, which could have significant impacts on ratepayers, our electric grid and our environment," said Representative Melanie Sachs, the sponsor of the bill.

"This bill positions Maine to respond deliberately and responsibly to a rapidly evolving industry."

Residents oppose data centers

If signed into law, the bill would pause approvals for data centers requiring more than 20 megawatts of power until late 2027, while a state council studies their impact on electricity grids, costs, and the environment.

Supporters of the bill say the move responds to mounting concerns that energy-intensive data centers could strain local power systems, raise household electricity bills, and consume large amounts of land and water.

Maine has seen rising energy costs in recent years, according to US Energy Information Administration, adding to public opposition.

A recent poll found 65% of Americans oppose having a data center built in their community.

Governor Mills had earlier pushed for an exemption for a smaller project which would use existing infrastructure with minimal impact on the grid or energy bills.

Lage data centers draw lawmakers' attention

Currently, Maine has no major data centers, though some proposals have emerged in recent weeks, Representative Sachs said.

Similar proposals are currently being discussed by 11 other US states.

In February, the residents of New Brunswick in New Jersey, mobilized to veto the plans of a data center citing energy consumption, environmental impact and real estate footprint.

Last month, lawmakers Bernie Sanders, Alexandria Ocasio-Cortez introduced a ⁠legislation to halt all construction ​on data centers until Congress passes AI safety legislation.

Senators Josh Hawley and Richard Blumenthal also introduced measures addressing the impact of data centers on energy costs.

Edited by: Darko Janjevic