Maine could become the first state to successfully time out in an AI race.
Lawmakers in at least a dozen states have introduced bills this year that would temporarily block the approval or construction of new data centers in an effort to slow Big Tech’s AI infrastructure.
The proposed moratorium is a response to growing local resistance to data centers, with communities across the country questioning the impact these facilities have on local resources and infrastructure.
There are 4,000 data centers in the United States, 3,000 of which are planned or under construction, according to the American Edge Project, a technology coalition. As their influence grows, local communities are mobilizing protests over a wide range of concerns, from noise pollution to rising utility bills.
Business Insider reviewed state legislative documents and found 12 data center moratorium bills introduced by state legislators in 2026.
Aerial view of a 33-megawatt data center with a closed-loop cooling system in Vernon, California, on October 20, 2025. The surge in demand for AI infrastructure is fueling a boom in data centers across the country and around the world. Mario Tama/Getty Images
Proponents of the ban said the moratorium on data center development would give state officials time to study the impacts of data center growth on the environment, electricity bills, public health, local infrastructure and more.
Of these 12 bills, only Maine’s bill has not stalled or been defeated. This week, the state House and Senate approved the bill’s text, clearing the way for a final vote before the Legislature adjourns on April 15.
If passed, the bill would temporarily prohibit construction of AI data centers in the state until November 1, 2027.
Nearly all moratorium bills called for a moratorium on data center construction for at least one year.
Although Maine doesn’t have a large data center footprint, developer interest is growing as Big Tech’s AI infrastructure build-out spreads to every corner of the country.
Lawmakers in states with mature data center markets, such as Georgia and Virginia, have struggled to rally support for a statewide moratorium.
Maine’s moratorium is not guaranteed until the governor signs it into law, and a veto is always a possibility.
On March 25, Senator Bernie Sanders (I-Vt.) and Representative Alexandria Ocasio-Cortez (I-N.Y.) held a press conference at the U.S. Capitol to announce the Artificial Intelligence Data Center Moratorium Act. Tom Williams/CQ-Roll Call, Inc (via Getty Images)
Last month, Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez introduced federal legislation calling for a national moratorium on data center development so Congress can better understand its impact.
“Congress is far behind where it should be in understanding the nature of this revolution and its impact,” Sanders said in a press release.
Here’s how 12 states tried to suspend new data center development.
georgia
A group of Democrats in the Georgia House of Representatives has proposed a moratorium on data center construction and development in the state. The bill was never brought to the floor for a vote.
House Bill 1059 would have required the state to create a commission to study the data center’s impact on Georgia’s power grid, water and local infrastructure.
According to the bill, Georgia would have 93 data centers.
Elon Musk’s xAI has a large data center in Atlanta, and Microsoft is building an AI infrastructure hub nearby.
maine
A bill to suspend data centers in the state is expected to pass both chambers of Congress on a final vote by April 15.
If passed, Maine would be the first state to enact a moratorium on data center construction.
Maine isn’t exactly a data center hotspot. As of early 2025, only two facilities in the state have applied for permits for diesel-fueled backup generators, according to Business Insider’s data center map.
maryland
A group of Republicans in the Maryland House of Delegates has launched an emergency measure that would immediately halt all data center construction in the state. Couldn’t get any traction.
If passed, the emergency measure would remain in effect until Maryland passes a law requiring all data centers in the state to generate their own electricity.
Instead, lawmakers are expected to pass a sweeping energy bill next week aimed at lowering household electricity bills.
Maryland’s data center market is small, but power-hungry facilities are driving up electricity bills, according to the state’s official utility watchdog.
Residents are picketing DTE Energy against the utility’s plan to power a $7 billion data center planned for rural Michigan. They fear it could raise household electricity bills and put water supplies at risk. : Jim West/UCG/Universal Images Group via Getty Images
michigan
A bipartisan group of lawmakers has introduced a bill that would temporarily suspend approvals for data centers in the state until April 1, 2027.
The bill has so far made no progress and is unlikely to succeed. Gov. Gretchen Whitmer previously said she opposed a data center moratorium in Michigan.
Meanwhile, grassroots efforts are beginning at the local level. East Lansing approved a six-month moratorium in March to give the City Planning Commission time to study the data center’s potential impact on the community.
Huron County, Delta County and Big Rapids Township approved grace periods ranging from one to three years.
new hampshire
Democratic lawmakers unsuccessfully tried to push through a one-year moratorium on data center construction that would allow the state to study potential environmental impacts.
Rep. Peter Schmidt’s House Bill 1265 failed on March 11th.
new york
State Sen. Liz Krueger’s S9144 would suspend the issuance of new data center permits in New York for three years, pending an environmental review.
If passed, the bill would also require the state Public Service Commission to issue a report on the impact data centers have on everyday ratepayers.
The bill has stalled in committee.
oklahoma
Sen. Kendall Sacchieri, a Republican from Oklahoma, said in a press release that he is seeking a moratorium on data centers in the state until 2029 “to ensure that progress does not come at the expense of Oklahomans’ quality of life or utility bills.”
The bill was introduced in January but stalled early in the state Legislature. However, the progress of the local community has not stopped.
Tulsa passed a nine-month data center moratorium last month. In March, the Seminole Nation became the first Indian tribe to ban data centers on its territory.
south carolina
Lawmakers proposed the moratorium in February. This bill has not yet received attention.
Google is expanding its presence in the state, and Meta is building a data center campus in Aiken County.
south dakota
A Senate committee in February rejected a moratorium bill, but South Dakota lawmakers were less lenient on data centers.
Several bills that would have boosted the state’s industry, including one that would have given the state a 50-year sales tax exemption, did not pass.
vermont state
Like neighboring Maine, Vermont has no major cloud data centers.
Still, Sen. Rebecca White proposed a moratorium this year. The bill was referred to the Senate Finance Committee in January but has not moved since then.
Tuesday, October 28, 2025, at the Microsoft data center in Aldie, Virginia, USA. Bloomberg/Getty Images
virginia
Lawmakers in Virginia, home to the world’s largest concentration of data centers, considered a moratorium bill and decided to postpone it until 2027.
Virginia has the world’s largest concentration of data centers and was one of the first states to offer the industry a sales tax exemption on computer equipment.
The Virginia Department of Taxation announced in January that the exemption cost the state budget $1.9 billion in fiscal year 2025.
The state Legislature is scheduled to convene a special session in late April to discuss the future of the exemption, which expires in 2035. Lawmakers are sharply divided over whether to end the program early or extend it until 2050.
wisconsin
Wisconsin’s attempt to pause data center construction was defeated on the Senate floor less than two weeks after it was proposed.
AB1099 would have implemented a moratorium on data center construction in Wisconsin until a statewide data center planning authority was established.
This week, the Milwaukee suburb became the first city in the country to pass a data center referendum, although state-level efforts failed. Currently, any future data center tax breaks in Port Washington, where the Oracle-backed Stargate site is located, must be approved by local voters.