Mills Weighs Data Center Ban, Eyes Jay Exception for Struggling Town

Mills Weighs Data Center Ban, Eyes Jay Exception for Struggling Town

Maine Gov. Janet Mills is taking time to review a landmark moratorium on new data centers that landed on her desk this week, signaling she may not embrace the Legislature's approach without changes.

The Democratic governor told NBC News on Friday that the bill lacks a provision she specifically pushed for: an exemption allowing a proposed data center project in Jay, a community that has been hammered by industrial collapse. Mills has until next week to sign, veto, or let the measure become law without her signature.

The legislation, passed earlier this week, would halt new data center construction statewide until fall 2027. The move marks the first major state-level attempt to pump the brakes on the booming data center industry, which has faced mounting local pushback over its massive electricity and water demands that fuel artificial intelligence operations.

Mills emphasized her sympathy for Jay's plight. The town has lost two paper mills in recent years, erasing the economic foundation that sustained generations of workers. She recalled the 2020 mill disaster that traumatized the community, describing the moment she feared hundreds had died in an explosion. "Bring on the locusts," she said she told her staff then, expressing despair about the town's prospects.

"Those people deserve a good look at what that data center could do for the community," Mills said, explaining why she wanted the carveout written into the bill.

Yet the governor is not dismissing broader concerns about data centers. She cited their voracious consumption of electricity and water in other states, and noted that the Jay facility sits on the Androscoggin River. The defunct paper mill there once pulled roughly 40 million gallons of water daily, giving her a concrete baseline to evaluate whether a data center could operate sustainably in that location.

When asked whether she might veto and request a legislative revision, Mills suggested the political calendar makes that unlikely. The Legislature returns only briefly for veto day, leaving little room for negotiation at this late stage of the session.

Mills' position carries extra weight because she is running for the U.S. Senate, and her handling of this bill will play into broader conversations about how she balances economic development with environmental stewardship and community welfare. Data centers have become a flashpoint in that debate nationwide, with communities torn between job creation and concerns about infrastructure strain and climate impact.

Author Sarah Mitchell: "Mills' hesitation exposes a real tension in state economic policy, especially in places like Jay where desperation for jobs collides with legitimate worries about what industry brings with it."

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