(The Center Square) — Gov. Janet Mills has vetoed a proposal that would have made Maine the first state in the nation to set a temporary ban on energy-hungry artificial intelligence data centers.
Last week, the Maine Legislature approved abillthat would block data centers using more than 20 megawatts of power until November 2027 to give state leaders time to come up with new rules and regulations for the facilities.
But Mills, a termed-out Democratic governor who is running for U.S. Senate, said the ban would block a planned $550 million redevelopment of a former paper mill in Jay, which she couldn't support.
“A moratorium is appropriate given the impacts of massive data centers in other states on the environment and on electricity rates," Mills wrote in her veto letter to lawmakers. "But the final version of this bill fails to allow for a specific project in the Town of Jay that enjoys strong local support from its host community and region."
Mills said the 2023 closure of the Androscoggin Mill "dealt a devastating blow" to Jay and its surrounding region. "As a long-time resident of Franklin County, I know well how critical the mill was to generations of working families, and how important it is – and how challenging it has been – to promote reinvestment and job-creation at the former mill which is a brownfield site," she wrote.
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Mills also signed a bill Friday that will prohibit data center projects from participating in the state's business development tax incentive programs.
In her veto letter, Mills said she plans to issue an executive order establishing a council to examine the impact of data centers in Maine, which is called for in a provision of the legislation she vetoed.
“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 wrote. "Given the serious conversations about data centers here and around the country, I believe this work should commence without delay."
Like many states, Maine is struggling to balance the energy demands of the artificial intelligence industry without driving up electricity costs or disrupting regional power grids. Lawmakers in at least five other states — Georgia, Maryland, Oklahoma, Vermont, and Virginia — have filed bills to set proposed moratoriums on new data centers. No state has imposed a complete ban.
In Congress, liberal firebrand Vermont Sen. Bernie Sanders has called for a "blanket moratorium" on data center permitting nationwide.
President Donald Trump signed an executive order in early December that limits states' ability to regulate artificial intelligence and upend existing laws. The order came after Congress failed to pass a bill with similar regulations. He has pledged to punish states that don't comply.
