Maine governor rejects first US state freeze on new data centers

Maine Governor Janet Mills on Friday vetoed a bill that sought to impose the first statewide moratorium on large new data centers in the U.S. The proposed legislation would have frozen approvals until October 2027 for facilities requiring over 20 megawatts of power, allowing a state-appointed council to analyze their environmental and electricity impacts. Governor Mills, a Democrat, stated her support for a temporary moratorium in principle, acknowledging the concerns about data centers' impact on the environment and electricity rates. However, she specifically objected to the bill's failure to include an exemption for a $550 million data center project in the town of Jay. This project, slated for the former Androscoggin paper mill site, is expected to create hundreds of construction jobs and over 100 permanent high-paying jobs, along with significant property tax revenue, and enjoys strong local backing. The Governor's decision highlights the complex balance political leaders face between economic development and environmental and energy concerns related to data centers. Mills also announced plans to issue an executive order to form a council to study data center impacts in Maine and has signed a separate bill to exclude data center projects from the state's business development tax incentive programs. The article notes that this action comes amid growing national opposition to the rapid expansion of AI data centers, with at least 11 U.S. states considering similar legislation to halt or restrict development. National figures like Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez have also introduced federal legislation to pause data center construction.