Legislators in Maine have endorsed a moratorium on building large data centres, becoming the first US state to try and rein in construction driven by the AI race.
The bill was passed by the state house and senate and is on its way to the desk of Democratic Governor Janet Mills, according to its sponsor, Representative Melanie Sachs.
It will become law if not vetoed by Ms Mills.
"This bill positions Maine to respond deliberately and responsibly to a rapidly evolving industry," said Ms Sachs.
"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."
A boom in generative artificial intelligence has sent data centre demand skyrocketing, with dozens of projects springing up across the United States.
The buildout comes at a cost, as the power-hungry facilities are straining local grids and driving up electricity bills.
Data centres also typically have massive footprints, taking up land that could be used for housing, businesses, recreation or green space.
Public sentiment is hardening, with a recent Quinnipiac University poll finding 65% of Americans oppose having a data centre built in their community.
If signed into law, the Maine bill would pause new data centre construction until November of next year.
It also calls for the creation of a council to assess risks and benefits of proposed data centres and provide input for planners.
Currently, there are no large-scale data centres in Maine, but some projects have been disclosed in recent weeks, according to Ms Sachs.
Data centre construction spending in the US has surged in recent years, with tech firms pouring tens of billions of dollars into building out infrastructure amid the race to lead in AI.
The Maine law would prohibit local authorities from issuing permits for data centres with electrical capacity exceeding 20 megawatts.
Maine is among the US states that have seen home electricity bills soar in recent years, according to the US Energy Information Administration.
Data centre projects were rejected in two cities in the state last year by elected officials who accused developers of concealing how much electricity and water the facilities would use, local media reported.
