Governor Mills Vetoes Landmark Data Center Moratorium in Maine, Citing Local Jobs
AUGUSTA, ME — Maine Governor Janet Mills vetoed legislation on Friday that would have imposed an 18-month moratorium on the construction of large data centers in the state. The bill, which had passed both chambers of the state Legislature, would have been the first such moratorium enacted in the United States.
Key Provisions of the Vetoed Bill
The legislation would have prohibited approvals until October 2027 for data centers requiring more than 20 megawatts of power. During the moratorium, a state-appointed council would have been tasked with studying the impact of such facilities on the local electrical grid, electricity rates, air quality, and water resources.
Governor's Rationale
In her veto message to the legislature, Governor Mills stated that she supports a temporary pause on data center projects. However, she indicated she would have signed the bill if it had included an exemption for a data center project under development in the town of Jay, Maine.
"The Jay project is expected to create over 800 construction jobs and at least 100 permanent jobs."
The Jay project is also expected to contribute significant property tax revenue to the town following the closure of a paper mill there in 2023. Governor Mills had previously attempted to secure a specific exemption for the Jay project but was unsuccessful.
Governor Mills noted her belief that it is necessary to examine and plan for the potential impacts of large-scale data centers, particularly as the use of artificial intelligence becomes more widespread. She also stated she will issue an executive order to establish a council to examine data center impacts and has signed a separate bill that excludes data center projects from Maine’s business development tax incentive programs.
Sponsor's Reaction
State Representative Melanie Sachs, the bill's sponsor, criticized the veto. She stated that while the decision may protect the Jay project, it carries potential consequences for ratepayers, the electrical grid, the environment, and the state's energy future.
Context and Background
- Industry Context: Data centers provide the computing infrastructure for artificial intelligence and cloud services.
- Energy Consumption: A 2024 study by the U.S. Department of Energy reported that data centers consumed 4.4% of total U.S. energy in 2023, with projections indicating a rise to 12% by 2028.
- Legislative Trends: Moratorium bills have been proposed in other states. A federal moratorium was also proposed by U.S. Senators Bernie Sanders (I-VT) and Representative Alexandria Ocasio-Cortez (D-NY).
- Political Commentary: Graham Platner, Governor Mills' primary opponent in her recent primary election, characterized the bill as a "Band-Aid" and advocated for federal artificial intelligence standards with labor protections. He stated that "when it’s left in the hands of corporate power, it is always used to disenfranchise people."
The article did not include comment from U.S. Senator Susan Collins (R-ME).