Maine Governor Janet Mills has vetoed a groundbreaking bill that sought to place an 18-month moratorium on the construction of large-scale data centers in the state. The decision, announced late Friday, came after weeks of deliberation and mounting debate over the balance between economic revitalization and concerns surrounding artificial intelligence (AI) infrastructure development.
In her press release, Mills acknowledged the importance of assessing the potential impacts of data centers as AI technology becomes more pervasive. "I believe it necessary and important to examine and plan for the potential impacts of large-scale data centers in Maine, as the use of artificial intelligence becomes more widespread", she stated. However, the governor rejected the bill due to its failure to accommodate a significant data center project in Jay, Maine.
The proposed data center in Jay, a community still reeling from the 2023 closure of a paper mill that cost hundreds of jobs, emerged as a central factor in Mills’ decision. The governor emphasized the positive economic impact the project could bring to the area, which is in dire need of economic recovery.
"This project - which is now under contract and which has received several permits - is expected to create more than 800 construction jobs, at least 100 high-paying permanent jobs, and would contribute substantial property tax revenue to the Town of Jay", Mills explained in her veto announcement.
The governor had previously expressed hesitations about the moratorium’s lack of exceptions for such projects, particularly one that could bring crucial economic benefits to a struggling region.
The bill, sponsored by state Representative Melanie Sachs, would have prohibited the construction of data centers requiring more than 20 megawatts of power for the next 18 months. If signed into law, it would have been the first statewide moratorium on data centers in the country. Maine’s legislative push mirrors a broader trend in the United States, where concerns about the environmental and labor-market effects of advanced AI systems have sparked bipartisan scrutiny of data center development.
Opponents of data centers frequently cite the significant energy demands of these facilities. A December 2024 study from the Department of Energy revealed that data centers accounted for 4.4% of the nation’s energy consumption in 2023, with projections suggesting this figure could rise to 12% by 2028. Critics also argue that the rapid expansion of AI-powered infrastructure threatens to exacerbate existing economic inequalities and labor disruptions.
Such skepticism has reached federal levels, with Senator Bernie Sanders, I-Vt., and Representative Alexandria Ocasio-Cortez, D-N.Y., introducing a bill in March proposing a nationwide halt on new data center construction.
Mills’ decision comes as she campaigns in a closely contested U.S. Senate primary against progressive challenger Graham Platner. Platner had publicly urged Mills to sign the moratorium bill, dismissing it as a "band-aid" solution but arguing for stricter federal standards to regulate AI and protect workers from potential harm caused by technological advances.
"It’s only an 18-month thing", Platner said in an interview last week. "My biggest problem with data centers and AI is that it’s very clear that AI is coming. And in every moment in human history where a new, transformative technology arises that increases productivity when it’s left in the hands of corporate power, it is always used to disenfranchise people. It is always used to, frankly, impact workers negatively."
The outcome of the primary race will determine who faces incumbent Republican Senator Susan Collins in the upcoming general election. Collins’ campaign has not publicly commented on the data center legislation.
Mills’ veto highlights the growing tension between fostering economic development and addressing public concerns about AI-related infrastructure. While the Jay project represents a much-needed boost for a struggling community, the broader pushback against data centers underscores the complexities of navigating rapid technological change. For now, Maine's data center debate remains unresolved, with ripple effects likely to resonate beyond the state’s borders.
