Nation’s first state moratorium on data centers vetoed by Maine’s governor
PORTLAND, Maine– Maine’s Democratic governor on Friday vetoed what would have been the nation’s first state moratorium on data center construction.
The bill passed by the Democratic-controlled state legislature would have instituted a moratorium of more than a year on data centers above a certain size and created a special council to help cities review potential projects. But Gov. Janet Mills said she vetoed the bill because it did not include a carve-out for a project in the town of Jay that would bring needed jobs to a community struggling since a local factory closed.
Proposals to impose a moratorium on data centers have been introduced in at least a dozen states, but other than Maine, none have even passed the legislative chamber. Such bills have faced opposition from data center developers, chambers of commerce, tech giants, labor unions and electric utilities.
Mills said she plans to issue an executive order to create a board to examine the impact of data centers.
“I believe it is 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. Given the serious discussions about data centers here and across the country, I believe this work should begin without delay,” she said in a statement.
A handful of counties and municipalities in the United States have imposed a moratorium, and opponents of state-level moratoriums say municipal officials are best placed to decide whether to allow a data center in their city.
Mills’ decision to veto Maine’s moratorium drew backlash from his own party, including from the Democratic state representative who sponsored the bill and groups that encourage a conservative approach to data centers. Rep. Melanie Sachs, the bill’s sponsor, said in a statement that the governor is “resisting the will of a majority of Maine people” with his veto.
“While a veto could protect Jay’s proposed data center project, it carries significant potential consequences for all ratepayers, our power grid, our environment and our shared energy future. This decision is simply wrong,” Sachs said.
Resistance to data center proposals has quickly grown in many communities, amid high-level support for artificial intelligence, technology companies and the data centers they build. President Donald Trump’s administration and many governors are touting them as a top economic and national security priority, essential to winning the artificial intelligence race with China.
Still, voters worry about the enormous amount of energy used by data centers, while analysts warn of the possibility of power outages across the mid-Atlantic grid in coming years.
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Levy reported from Harrisburg, Pennsylvania.
