Maine's governor vetoes nation's first state moratorium on data centers

Maine's Democratic Governor Janet Mills vetoed a bill that would have established the country's first state-level moratorium on data center construction. The legislation, which had passed the Democrat-controlled state legislature, sought to impose a temporary halt for over a year on large data centers and create a council to aid towns in vetting projects. Governor Mills stated her opposition stemmed from the bill's failure to include an exemption for a specific data center project in Jay, Maine, which she believes is vital for job creation in a community affected by a mill closure. She announced plans to issue an executive order to form a council to study the impacts of data centers, emphasizing the need to prepare for the widespread use of artificial intelligence. The veto has drawn criticism from within her own party, including from the bill's sponsor, Democratic state representative Melanie Sachs. Sachs argued that the veto "resists the will of a majority of Maine people" and poses significant risks to ratepayers, the electric grid, and the environment. Data center moratoriums have been proposed in several states but, prior to Maine's bill, none had advanced through a legislative chamber, often facing opposition from developers, industry groups, and utilities.