Gov. Janet Mills vetoes moratorium on data center development in Maine

Governor Janet Mills has vetoed a bill that sought to impose an 18-month moratorium on large-scale data center development in Maine, which would have been the first such statewide ban in the U.S. The legislation, supported by both Democrats and Republicans, aimed to pause new data centers consuming over 20 megawatts of power due to concerns about their environmental impact and strain on electricity grids. Governor Mills' veto hinged on her desire to exempt a proposed $550 million data center project in the Town of Jay, a community facing economic challenges since the closure of its paper mill in 2023. While an amendment to include this exemption was defeated in the Legislature, Mills argued that the Jay project, which enjoys strong local support and promises hundreds of jobs and millions in tax revenue, should not be derailed. State Rep. Melanie Sachs, the bill's Democratic sponsor, criticized the veto as "simply wrong" and against the advice of a state task force on artificial intelligence, stating it "resists the will of a majority of Maine people." Maine Conservation Voters also expressed disappointment, accusing the governor of "siding with AI data center developers." Despite the veto, Governor Mills committed to establishing a commission to draft comprehensive guidelines and regulations for future data center developments across Maine.