Maine Governor Janet Mills vetoed a landmark moratorium on large data center construction Friday, rejecting what would have been the nation's first statewide ban to pass both chambers of a legislature. The veto came down to a single project and the economic desperation of a rural community.
The bill, sponsored by state Rep. Melanie Sachs, would have halted construction of any data center requiring more than 20 megawatts of power for 18 months. Mills had wrestled with the decision for days after the state Legislature passed the measure last Tuesday, acknowledging the legitimate concerns about data centers while ultimately siding with economic necessity.
The sticking point was a proposed data center in Jay, Maine, a town still reeling from the 2023 closure of a paper mill that eliminated several hundred jobs. The project under contract would generate more than 800 construction jobs and at least 100 permanent positions while delivering substantial property tax revenue to the struggling community, Mills noted in her veto announcement.
"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," Mills said in a statement. But she added that the bill's failure to carve out an exception for the Jay project made it impossible to sign.
Mills had attempted unsuccessfully to negotiate an exemption for the development. When that failed, she faced a choice that highlighted the growing tension between climate and labor concerns over data center expansion.
Data centers consume massive amounts of electricity to power artificial intelligence and cloud computing services. A December 2024 Department of Energy study found that data centers used 4.4% of America's electricity in 2023, with projections showing that figure could reach 12% by 2028.
Opposition to data center construction has become a rare bipartisan issue. Proposed moratoriums have surfaced in New York, Oklahoma, and Georgia, driven by concerns over rising energy costs and potential job displacement from automation. In late March, Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez proposed a federal moratorium on new data centers.
Public sentiment tracks with these policy efforts. A recent NBC News poll showed artificial intelligence viewed less favorably than Iran among Americans.
Yet the global AI industry plans to spend nearly $3 trillion on data centers and related infrastructure through 2028, indicating rapid expansion regardless of political headwinds.
The veto puts Mills at odds with her primary rival in a U.S. Senate race. Graham Platner, a progressive political newcomer, called the moratorium a "Band-Aid" and argued the real solution lies in federal standards that protect workers. He said the 18-month ban missed the larger problem: "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."
The Democratic primary winner will ultimately face incumbent Republican Senator Susan Collins, whose campaign did not respond to requests for comment on the data center issue.
Author Sarah Mitchell: "Mills made the harder choice by rejecting a symbolic gesture in favor of real jobs for real people, but that won't stop progressives from using it as a cudgel in the primary."
Comments