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Regbase

The Data Center Divide

Kennebec County

For Kennebec County, see Maine’s statewide laws and regulations below. No additional county-specific measures are listed in our research.

Neutral Data Center Policies

Maine has no general data-center ban, but enacted rules remove certain tax and business incentives for facilities operating from August 2026, with some expansions affected. A narrow electricity-provider limit applies at certain sites, and state agencies are directed to develop ways to make data centers cover costs they cause.

current law · Statewide
Excludes data centers beginning operations on or after August 1, 2026, from certain business equipment tax exemptions and Dirigo business incentives, and requires a state study of potential data-center incentives.Maine LD 713 (2026)

What this means

It would remove property-tax and business-incentive benefits for data centers that begin operating on or after August 1, 2026, including certain expansions, adding a meaningful cost to building or expanding them (new data-center property excluded from the exemption). The required study of possible incentives offers no immediate benefit, and the measure adds no general ban or operating requirements.

People behind it

  • Sponsored and presented LD 713.

  • Sponsored an amendment to LD 713.

  • Must study potential financial incentives for data centers and submit a report with suggested legislation.

Restrictions & requirementsHide restrictions & requirements3
  • The Business Equipment Tax Exemption is unavailable for property in a data center, or in a portion of a facility that is a data center, that begins operations on or after August 1, 2026. The exclusion also covers property that is part of a later expansion or project. This removes a property-tax exemption that might otherwise apply. The exclusion and its timing

  • A data center that begins operations on or after August 1, 2026, cannot qualify for Maine’s Dirigo business incentives program. For this rule, beginning operations requires installed operational computer and networking equipment and the performance of computing services; construction, site preparation, and equipment installation alone do not count. The data-center eligibility exclusion

  • The Dirigo program’s eligible sector for software publishing, data processing, and computer design services excludes services performed at a data center. This restriction has no start-date qualification in the provision. Services performed at a data center are excluded

Benefits & exceptionsHide benefits & exceptions1
  • The new Business Equipment Tax Exemption exclusion is limited to data centers or portions of facilities that begin operations on or after August 1, 2026. Thus, a center already operating before that date is not newly disqualified from the exemption by this provision; post-cutoff operations and covered expansion or project property are excluded. The cutoff and expansion limit

Sources

current law · Statewide
Restricts certain northern Maine industrial sites from using a non-utility electricity provider if data centers use more than 25% of its capacity.Maine LD 912 (2025)

What this means

The measure creates a limited hurdle for certain commercial or industrial sites north of Chester: their electricity-provider exception does not apply if more than 25% of the provider’s capacity serves data centers (25% capacity limit). Because this applies only to a narrow category of sites, it is a minor rather than statewide barrier to building or operating data centers.

People behind it

  • Sponsored and presented LD 912.

  • Proposed the committee amendment that replaced the bill’s original text.

Restrictions & requirementsHide restrictions & requirements1
  • For a qualifying commercial or industrial site north of Chester, an entity’s exception from regulation as a transmission and distribution utility does not apply if more than 25% of its nameplate capacity serves data centers on that site. The exception otherwise concerns qualifying consumers at sites within ISO New England’s control area that were served without a public utility’s transmission and distribution plant before December 31, 2018. The exception does not apply above the 25% threshold.

Benefits & exceptionsHide benefits & exceptions1
  • At qualifying commercial or industrial sites in municipalities north of Chester, an entity may provide electricity to commercial or industrial consumers without using a public utility’s transmission and distribution plant, which can include data centers. The site must be within ISO-NE’s control area and have been served by the entity or its predecessor without that plant before December 31, 2018; data centers may use no more than 25% of the entity’s nameplate capacity. The exception does not apply if more than 25% of nameplate capacity serves data centers.

Sources

current law · Statewide
Establishes a state council to assess large data center impacts and recommend policies, while directing energy officials to find ways to protect customers from related energy costs.Maine Executive Order 5 (2026)

What this means

The order does not ban or pause data center projects, and its advisory council mainly studies the issue and makes recommendations. However, it directs state agencies to develop ways to ensure data centers cover costs they cause, which could add some costs for developers: costs attributable to data center development.

People behind it

  • Governor of Maine who issued and signed the executive order establishing the Maine Data Center Advisory Council.

  • Agency directed to coordinate with the Public Utilities Commission to identify and implement ratepayer-protection strategies related to data center development.

  • Agency directed to coordinate with the Department of Energy Resources on implementing ratepayer-protection strategies related to data center development.

Restrictions & requirementsHide restrictions & requirements1
  • The Department of Energy Resources, coordinating with the Public Utilities Commission, must develop mechanisms— to the extent allowed by law—so that entities responsible for data-center-related energy costs fully bear those costs, including increased electricity supply, transmission, and distribution costs and risks of stranded utility assets.

Benefits & exceptionsHide benefits & exceptions1
  • State actions to minimize risks may not preclude or delay responsible ongoing local efforts and development activities, protecting qualifying data-center projects from being blocked or unnecessarily delayed by the order.

Sources

failed · Statewide
Would have temporarily barred approvals for data centers using at least 20 megawatts and required a state council to study their impacts, but the bill was vetoed and did not become law.Maine LD 307 (2026)

What this means

If enacted, it would temporarily block permits and approvals for data centers with a load of 20 megawatts or more, until November 1, 2027. The state coordination council could help future planning, but it would not offset the immediate barrier for large projects; smaller data centers would not be covered.

Timing

Ends
Nov 1, 2027

The bill text bars approvals for data centers with a load of 20 megawatts or more before November 1, 2027, and repeals that section on that date. However, the Governor’s veto was sustained, so the measure did not become law (veto sustained).

People behind it

  • Sponsor of LD 307.

  • Sponsor of House Amendment B to the committee amendment, which changed the council’s funding mechanism.

  • Proposed Committee Amendment A, which replaced the original bill with the data center council and temporary limitation provisions.

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  • Assigned to convene the Maine Data Center Coordination Council.

  • Designated to chair the council, or to have a designee serve as chair.

Restrictions & requirementsHide restrictions & requirements1
  • The measure would have barred municipalities, quasi-independent state entities, and state agencies from accepting applications or issuing approvals for developing, constructing, or operating data centers with a load of 20 megawatts or more before November 1, 2027. The temporary limitation would have been repealed on that date.

Benefits & exceptionsHide benefits & exceptions2
  • The council must offer municipalities guidance for assessing data center impacts and benefits, including community benefit agreements. This is guidance, not a permit or approval guarantee. municipal guidance

  • The council must develop recommendations to clarify government and utility roles, information sharing, and timelines for coordinated, timely responses to data center development inquiries. These are recommendations, not binding permitting changes. coordinated, timely responses

Sources

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