Maine Governor Dismisses Data Center Moratorium

Maine appeared poised to become the first state to enact a moratorium on data center development. The governor of the state eliminated that with one stroke of the pen.

Maine Gov. Janet Mills vetoed a measure that would’ve frozen permitting for data centers larger than 20 megawatts, Bloomberg reported. The moratorium, supported almost unanimously by Mills’ own party — the same Democratic party for which Mills is seeking a Senate nomination — would’ve paused activity until November 2027.

Mills’ veto is rooted in a project in Jay, part of the governor’s home county. The $550 million development is expected to create 1,000 construction jobs and 150 permanent jobs at a site where a paper mill recently closed, which “devastated” the local community, according to Mills.

The governor pleaded for an exemption for that project. When that didn’t come to fruition, the veto became her top option. Even with massive Democrat support, there’s likely not enough lawmakers ready to override Mills’ veto.

“While a veto might protect the proposed data center project in Jay, it poses significant potential consequences for all ratepayers, our electric grid, our environment and our shared energy future,” State Rep. Melanie Sachs said in a statement.

In addition to the moratorium, the measure would’ve created a state council to evaluate the pros and cons of data center development, which is not widespread in the Pine Tree State. There are only nine data centers in Maine, though developers are beginning to look at small-scale projects.

The expansion of AI-fueled data centers is facing resistance from investors and local communities over high power and water consumption, forcing tech giants to scrap multibillion-dollar projects.

Investors are demanding greater disclosure on site-level water usage and energy consumption to mitigate growing financial and environmental risks.

Local opposition, meanwhile, is centered on water supplies, rising power costs and land use.

That local opposition could be problematic for Mills’ political future as she appears to be running behind Graham Platner ahead of a widely watched June 9 Democratic Senate primary.

— Holden Walter-Warner