Data Centers In Maine: Challenges, Policy And Development Updates, And Permitting Considerations

Foley Hoag is publishing a series of articles on the legal and business issues confronting the data center industry. Part 1 examined energy usage challenges. Part 2 examined water, community, land use, and e-waste challenges. Part 3 will examine the policy landscape and innovations in data center development. A focus issue post examined emerging aspects of the industry, including cross-border interplays and the potential for data center development in space. As a further extension of this series, in this post, we are focusing on state-specific considerations for data center development in Maine.

Currently, data center capacity in the United States is concentrated in northern Virginia and in several large cities throughout the country, but continued demand for additional data center capacity may encourage developers to pursue development outside of those clusters and in less urban areas.

Maine, like many states, is preparing for potential data center developments. In fact, development activity in Maine, while nascent, is already underway: several data center developments have made recent news, including a proposed 24-megawatt data center in Lewiston and the announcement of an "AI data center" development in Limestone. These developments are discussed below.

Given the relatively early stage of Maine's data center policy development process, data center developers should plan to engage early with state regulators, local officials, and community members. In this post, we discuss high-level business and legal considerations for prospective data center developers in Maine, the state of play of data center-related policies in Maine, recent development announcements, and relevant permitting regimes.

Data Center Challenges and Solutions

The challenges that affect data center deployment nationwide also arise in Maine, but the unique features of the state may offer ways to address those challenges.

• Energy Needs and Emissions. Data centers have substantial electric loads. According to the International Energy Agency, "a typical AI-focused data center consumes as much electricity as 100,000 households, but the largest ones under construction today will consume 20 times as much." Data from the U.S. Energy Information Administration shows that Maine has lower to moderate electricity prices across commercial and industrial sectors in New England relative to other New England states and New York. Data centers' energy intensive operations can translate to significant greenhouse gas impacts if fueled by carbon-intensive sources. However, given the general availability of land, Maine presents high potential for the co-location of data centers with solar, wind, battery storage, or hydropower resources that could potentially both stabilize energy-related costs and mitigate emissions. For more information, see our prior posts discussing strategies employed by data centers to manage energy use, generation deployment delays, and energy-related emissions.
• Access to Fiber. In Maine, developers may benefit from extensive fiber connectivity via the Three-Ring Binder, an existing 1,100-mile open access fiber network that spans both rural regions and urban service centers and is connected via multiple paths to Canada and the broader U.S. internet grid. The Maine Connectivity Authority is working to build out the Maine Online Optical Statewide Enabling Network, or MOOSE Net, an additional 530 miles of fiber in parts of central, northern, and eastern Maine. Construction on MOOSE Net began in 2025 and is expected to take two years to complete.
• Water Use. Cooling systems, required to keep data center components operating at optimal temperatures, can consume large volumes of water. Maine's relatively cool year‑round average temperatures could prove to be a benefit for data centers that take advantage of cool, outside air to reduce cooling needs, water demand, and energy usage. For more information, see our prior posts discussing strategies employed by data centers to reduce water usage and implement efficient cooling systems.
• Siting Considerations. Selecting a site for a data center is a complex undertaking, involving intensive investigation of multiple factors, including proximity to power, internet infrastructure, water resources, and sensitive environmental resources. Developers should expect that communities will have strong views on all aspects of site selection, design, and operation. Early, sustained, and authentic community engagement is foundational to successful siting of data centers or any other new type of development in Maine. For more information, see our prior posts discussing community engagement and siting considerations for data centers. We discuss relevant permitting regimes, below.
• Electronic Waste Generation. Data centers can create significant e waste. A key consideration for data center developers will be extending equipment lifespans and implementing modular designs to enable material longevity and recovery. For more information, see our prior posts discussing strategies being employed by data centers to reduce e-waste.

Maine Data Center-Related Policy Updates

Maine is in a relatively early stage of policy development with respect to AI and data centers. In October 2025, the Maine Artificial Intelligence Task Force released a report detailing its policy recommendations regarding AI, data centers, and Maine's economy. The report recommends, in part:

• Continuing to strengthen Maine's broadband and energy infrastructure to prepare for AI's impacts;
• Assessing broadband, computing, and energy and water infrastructure to guide infrastructure investments; and
• Developing a playbook for responding to data center development project opportunities while ensuring that development supports Maine's goals.

The acting commissioner of the Maine Department of Energy Resources, Dan Burgess, is quoted in the report as saying: "Maine is working to understand the benefits, challenges, and best practices to ensure future developments strengthen our grid, drive economic development, and support affordable energy for people and businesses." Developers should keep these policy goals – strengthening the grid, driving economic development, and affordability – in mind when designing projects and discussing potential developments with state officials.

As of publication, data center-related legislative activity has been minimal.

Recently Announced Data Center Developments in Maine

In late December 2025, the Lewiston City Council voted against a proposed 24-megawatt data center. According to an article by the Maine Monitor, the result was in part due to strong public opposition.

In October 2025, developers announced their plans to locate a data center, referred to as the Loring LiquidCool Data Center, at the Loring Air Force Base in Limestone. News reports suggest that the data center will use immersion cooling technology to eliminate water consumption in the data center's cooling process, and will run entirely on hydroelectric power sources from New Brunswick. The owner of the property that will house the data center, Green 4 Maine, hopes that the former base will become a "campus" of data centers, in part due to its connection to the state's Three-Ring Binder fiber optic network.

In addition to the Lewiston and Limestone developments, news sources indicate that at least two other towns in Maine —Millinocket and Wiscasset—have also been considered for potential data center developments.

According to one source, eight data centers currently operate in Maine.

Permitting Data Centers in Maine

Building a data center in Maine will require navigating a robust permitting process to ensure compliance with environmental, safety, and zoning laws and regulations. Early planning is critical to avoid delays and align with Maine's policy goals. Depending on project scope and location, applicable state permits may include:

• Site Location of Development Permit, Maine Department of Environmental Protection ("ME DEP"). Required for developments that may have a substantial effect on the environment, such as developments that occupy more than twenty acres.
• Maine Construction General Permit, ME DEP. Required for construction activities that result in one or more acres of soil disturbance.
• Natural Resources Protection Act Permit, ME DEP. Required for work in, on, or over any protected natural resources; or adjacent to wetlands and other freshwater natural resources.
• Large-Scale Groundwater Extraction Permit, ME DEP. Required for work that includes a significant groundwater well that may affect neighboring public or private wells.
• Aboveground Oil Storage Tank Permit, ME DEP. Required for sites that will co-locate fuel sources on site, varying based on type of fuel and facility size.
• Waste Discharge Program Permit, ME DEP. Required for any discharge of pollutants to a stream, river, wetland, lake of the state, or to the ocean.
• Air Permit, ME DEP. Required for stationary sources with potential emissions above minor source thresholds or with equipment that emits criteria pollutants or hazardous air pollutants.

Data centers will also likely need to secure local zoning and land use permits, as well as permits for buildings, fire safety, electrical work, and water and sewer connections. Depending on their location, data centers may need to work with municipalities for such permits or, for development in unorganized and deorganized areas of Maine, the state's Land Use Planning Commission. Early engagement with local officials and communities can help uncover and resolve siting concerns before they emerge.

Conclusion

Maine, like many states, is positioning itself and preparing for data center development. We are available to advise developers of prospective data centers in Maine and continue to monitor related policy developments.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.