Maine Slow-Walks AI Data Center Boom Amid Energy Fears

While states across the U.S. scramble to court Big Tech’s trillion-dollar infrastructure buildout, Maine is effectively pumping the brakes. In a decided shift away from the "growth at all costs" mentality seen elsewhere, officials and communities in the Pine Tree State are rejecting major artificial intelligence projects to protect local power grids and ratepayers.

This cautious approach was cemented this week when the Lewiston City Council unanimously voted down a $300 million data center proposal for the historic Bates Mill Complex. The rejection serves as a bellwether for a state that is increasingly viewing the AI gold rush as a potential liability rather than an economic savior.

The Lewiston Rejection
The rejected Lewiston project, spearheaded by MillCompute LLC, promised a $300 million investment and a 24-megawatt facility. However, councilors and residents balked at the environmental ambiguity and the lack of guaranteed community benefits.

"There is no window in which to get any community buy-in," noted Councilor Joshua Nagine during the hearing. The concern echoed by many was that while the project offered tax revenue, the "resource curse"—potential strain on the local grid, noise pollution, and minimal job creation—outweighed the financial upside.

"The Highest Electricity Prices"
Maine’s skepticism is rooted in a hard economic reality: its residents already pay some of the highest electricity rates in the nation.

Heather Sanborn, Maine’s Public Advocate, has become a vocal critic of unbridled expansion. She warns that even if data centers pay for their own infrastructure, their massive demand drives up regional transmission costs—costs that eventually trickle down to every household’s monthly bill.

The Fear: A single AI "hyperscale" facility can consume as much power as 50,000 homes.

The Risk: If the grid requires billions in upgrades to support these private tech hubs, Maine ratepayers could be left holding the bag.

This stance has even entered the national political arena, with federal officials recently citing Maine as an example of a state with "no data center activity" due to high energy costs—a characterization local leaders dispute, arguing it is a matter of choice and regulation rather than just economics.

The Exception: A "Green" Experiment at Loring
Despite the general freeze, Maine is allowing one significant experiment to proceed. A new AI data center is moving forward at the former Loring Air Force Base in Aroostook County.

Unlike the Lewiston proposal, this project is pitching itself as a "next-generation" facility. The developers, LiquidCool Solutions, claim the site will use:

Renewable Power: Relying primarily on local hydroelectric sources.

Water-Free Cooling: Using a specialized "immersion cooling" technology that submerges servers in fluid, eliminating the need for the massive water consumption typical of data centers.

However, even this project faces scrutiny. Environmental groups remain wary of the backup diesel generators required for such a facility, fearing that "emergency" use could become routine during grid instability, pumping pollutants into the pristine northern Maine air.

The Policy Wall
Governor Janet Mills has responded to the growing tension by establishing an Artificial Intelligence Task Force, which recently released 34 recommendations focusing on "guardrails" rather than just incentives.

Simultaneously, state legislators have introduced measures like LD 912, a bill designed to strictly limit the amount of electricity any single commercial site can draw from the grid.

"We just need to make sure we're protecting Mainers," said Emily Carey Perez de Alejo of Defend Our Health. "We have enough lessons from across the country already. We should not ignore them."