Maine Governor Vetoes Landmark Data Center Moratorium

Maine's landmark bill to become the first U.S. state to impose a moratorium on large AI data centers was vetoed by Governor Janet Mills, despite passing the Democrat-controlled legislature. The bill would have banned data centers with loads of 20 megawatts or more until November 1, 2027, and established a 13-member council to study their impact on the environment and electricity rates. Mills' veto came after a specific project in the Town of Jay—a community reeling from a 2023 mill closure—won strong local support for its promise of hundreds of temporary construction jobs and permanent positions. Mills cited the lack of an exemption for this project as the reason for her veto, noting letters of support from local officials and the regional Chamber of Commerce.

While vetoing the moratorium, Mills signed a separate bill to block data centers from certain state tax incentives and create a council to plan for large-scale impacts. The veto highlights the tension between local economic needs and growing public opposition to AI infrastructure, which has sparked protests, rising utility bills, and even violent incidents, such as a shooting in Indianapolis and a molotov cocktail attack on OpenAI CEO Sam Altman's home. Supporters of moratoriums argue they are necessary to allow researchers and policymakers time to understand AI's true impact. Mills' decision could influence her upcoming Senate primary race, where she trails opponent Graham Platner, who supported the bill.