Maine is on track to become the first state to impose a moratorium on major new data-center construction, as officials and residents express concern about rising electricity costs and potential strain on the power grid from the artificial intelligence boom.

A bill moving through the legislature would halt projects consuming at least 20 megawatts of power—enough electricity for more than 15,000 homes—until November 2027, allowing time to study environmental and energy impacts. The measure passed the Democrat-controlled Maine House last month with bipartisan support and is expected to pass the Senate. Gov. Janet Mills has expressed support for the moratorium, with potential exceptions for certain projects.

Maine already has some of the nation’s highest residential electricity rates, and state leaders fear a surge in demand from data centers could increase costs further. The debate has drawn national attention, as lawmakers in at least 10 other states consider similar restrictions, citing environmental concerns, local power capacity, and rising rates.

Experts say Maine may serve as a warning for other states. “Maine will be the first of many states to have such moratoria,” Anirban Basu, chief economist for Associated Builders and Contractors, told The Wall Street Journal. Temporary bans or pauses have been proposed in New York, South Carolina, Oklahoma, and other states, with local measures appearing in Michigan, Indiana, Denver, and Detroit. Ohio activists are also pursuing a statewide ballot initiative to limit large data centers.

Developers are adjusting plans as opposition grows. Tracey Hyatt Bosman, a site selection consultant, said proposed laws are “a red flag” that limits potential locations. Tony McDonald, developing a data center in Jay, Maine, warned the moratorium could disrupt projects already underway. Some initiatives target former industrial sites, including closed mills, while one project proposes a $415 million underwater facility.

Although amendments are possible, some state political operatives believe a moratorium in some form will pass. “There is a very strong voter fear of data centers and AI,” said Tony Buxton, a climate and energy attorney. Gov. Mills’ office indicated she would support the bill if exceptions are included for projects like the Jay development, citing potential job creation, economic activity, and tax revenue for the region.