Maine Governor Vetoes AI Data Center Pause, Protects $550 Million Jay Project
Maine Gov. Janet Mills vetoed a bill Friday that would have paused artificial intelligence data center construction for 18 months, citing potential harm to a permitted project expected to create hundreds of jobs.
The $550 million data center in Jay would redevelop the former Androscoggin Mill, damaged in a 2020 boiler explosion and closed in 2023. The mill's closure cost the town 22% of its tax revenue and hundreds of jobs. The new facility is projected to create 800 construction jobs and more than 100 permanent positions.
The bill would have been the first in the country to restrict or slow large-scale data centers required for generative AI and LLM systems. Data centers consume enormous amounts of electricity and water, driving up costs for residents in nearby areas.
Mills acknowledged the concern. "A moratorium is appropriate given the impacts of massive data centers in other states on the environment and electricity rates," she said in a statement. But she said the final bill failed to carve out an exemption for the Jay project, which has strong local support.
Data Center Growth Outpaces Regulation
The U.S. has more than 5,000 data centers - more than any other country - with significant growth over the past four years as AI for IT & Development has become a tech industry priority.
State and local leaders have begun responding to resident concerns about power consumption and water usage. Some members of Congress have also raised questions about the infrastructure demands.
President Donald Trump has pushed back against state regulation, arguing that tech companies "must be free to innovate without cumbersome regulation." An executive order he issued in December directs states to avoid creating new regulations on the sector.
Maine Plans Data Center Study
Mills said she worked with Maine's legislature to exempt the Jay project but was unsuccessful. Instead of accepting the broader moratorium, she vetoed the bill and plans to issue an executive order establishing a council to study data center impacts in the state.
"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 letter to legislators.
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