Mills vetoes temporary data center ban

Maine Governor Janet Mills has vetoed a legislative proposal that sought to implement a temporary statewide ban on high-energy artificial intelligence data centers until November 2027. The bill, which passed the Maine Legislature, aimed to provide state leaders time to establish new regulations for such facilities, specifically targeting those consuming over 20 megawatts of power. In her veto letter, Governor Mills expressed concern that the ban would impede a planned $550 million redevelopment project for a former paper mill in Jay, located in Franklin County. She highlighted the project's strong local support, emphasizing its importance for the town of Jay and the surrounding region following the 2023 closure of the Androscoggin Mill. Mills, a long-time resident of Franklin County, noted the mill's historical significance to working families and the challenge of promoting reinvestment and job creation at the brownfield site. Concurrently with the veto, Mills signed a separate bill on Friday that will prevent data center projects from utilizing Maine's existing business development tax incentive programs. She also stated her intention to issue an executive order to establish a council tasked with examining the broader impacts of data centers within Maine, a measure that was initially included in the vetoed legislation. The governor acknowledged the need to assess and plan for the potential impacts of large-scale data centers as AI technology expands. Maine joins other states like Georgia, Maryland, Oklahoma, Vermont, and Virginia, where lawmakers have filed bills proposing moratoriums on new data centers, reflecting a national struggle to balance energy demands with electricity costs and grid stability. Nationally, Senator Bernie Sanders has called for a "blanket moratorium" on data center permitting, while former President Donald Trump signed an executive order in December limiting states' ability to regulate AI.