Maine Gov. Janet Mills vetoes ban on data center construction

Maine Governor Janet Mills vetoed a significant bill that aimed to halt the construction of large data centers across the state for 18 months. The bill, sponsored by state Rep. Melanie Sachs, sought to prevent any data center requiring more than 20 megawatts of power from being built for a year and a half. It had successfully passed both chambers of the state Legislature, marking the first time such a statewide moratorium had advanced so far in the nation. In her press release announcing the veto, Governor Mills acknowledged the importance of examining the potential impacts of large-scale data centers, especially with the rise of artificial intelligence. However, her decision was primarily driven by the bill's failure to include an exception for a specific data center project in Jay, Maine. Jay, a town severely impacted by a paper mill closure in 2023, stands to gain over 800 construction jobs, at least 100 high-paying permanent jobs, and substantial property tax revenue from this project, which is already under contract and has received several permits. Mills' veto comes amid increasing national criticism of data centers, with concerns about spiking energy bills and the potential labor-market impacts of advanced AI systems. A December 2024 Department of Energy study noted that data centers consumed 4.4% of America's energy supply in 2023, projected to rise to 12% by 2028. Despite this opposition and proposed bans in other states, the global AI industry is expected to invest nearly $3 trillion in data centers and related infrastructure by 2028. The governor's decision also has political implications. Mills, a two-term governor running for the U.S. Senate, faces a primary challenge from Graham Platner, who advocated for signing the bill and called it a "Band-Aid" solution, emphasizing the need for federal AI standards with labor protections.