The best and worst states for AI data centers

Axios
by Maria Curi
April 17, 2026
2 views
3 min read

Quick Insights

The Bottom Line

States like Texas and Maine are taking opposite approaches to AI data center construction.

How This Affects You

Your state's approach to AI data centers could impact local resources like water and electricity, potentially affecting utility costs or infrastructure development.

AI Summary

Texas and Maine represent opposite approaches to AI data center construction, with Texas encouraging investment and Maine moving towards a moratorium. Texas boasts 212 operating data centers as of 2024 and offers over $1 billion annually in tax incentives, despite resident concerns over water and electricity demands. Conversely, Maine's proposed statewide moratorium on new data center construction is headed to Gov. Janet Mills' desk, which would give a state council 18 months to evaluate electric load growth and ratepayer protection strategies. State Rep. Melanie Sachs, the bill's sponsor, emphasized the need for regulatory certainty for developers. While Maine is closest to implementing a moratorium, at least 11 other states are considering pauses, and federal legislation has been introduced by Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez to pause all new data center construction nationwide.

What's Being Done

Maine's proposed moratorium on new data center construction is headed to Gov. Janet Mills' desk for approval.

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