Maine Gov. Janet Mills vetoes bill pausing AI data center development

Maine Governor Janet Mills vetoed a legislative bill aimed at implementing an 18-month moratorium on artificial intelligence data center construction across the state. Governor Mills stated that her decision was influenced by the potential negative impact on a permitted $550 million data center project located in Jay, Maine. This project, which involves the redevelopment of the former Androscoggin Mill, is expected to generate hundreds of construction and permanent jobs, alongside substantial tax revenue for the town, which lost significant revenue after the mill's closure in 2023. The proposed bill would have been the first of its kind in the nation to restrict large-scale data centers, which are known for their high electricity and water demands. Mills acknowledged the general appropriateness of a moratorium due to environmental concerns and rising electricity rates in other states, but emphasized that the bill failed to accommodate the locally supported Jay project. In the wake of the veto, Governor Mills announced her intention to issue an executive order to establish a council. This body will be tasked with studying the real and potential impacts of data centers within Maine, especially as AI technology becomes more widespread, signaling a continued focus on addressing data center development implications at the state level.