Maine Governor Blocks Data Center Moratorium, Prioritizing Jobs Over AI's Power Demands

Maine Governor Janet Mills vetoed a bill Friday that would have imposed an 18-month freeze on permits for data centers drawing 20 megawatts or more. LD 307, which passed the Democrat-controlled legislature with bipartisan support in April, aimed to be the first statewide moratorium on these energy-intensive facilities. Instead, Mills chose to protect a specific project in Jay, a town still reeling from the 2023 closure of the Androscoggin Mill, which cost hundreds of jobs.

The proposed $550 million data center in Jay promises 800 construction jobs and 100 permanent positions, along with tax revenue for schools and roads. Local leaders, including the Town of Jay and Franklin County Commissioners, lobbied for an exemption. Mills, a longtime Franklin County resident, noted she would have signed the bill if it included that carve-out. The project reuses existing buildings, water, and power infrastructure, with developers claiming no additional grid strain.

Mills plans to issue an executive order creating a council to study data center impacts, and she signed LD 713, which bars these projects from state business tax breaks. But the veto drew sharp criticism. State Rep. Melanie Sachs, the bill's sponsor, accused Mills of ignoring her own task force and the will of Mainers, warning of higher electricity rates and environmental harm. House Speaker Ryan Fecteau and Maine Conservation Voters echoed those concerns.

The clash highlights a national tension: AI's explosive growth drives demand for data centers, but the U.S. Energy Information Administration warns they could raise Maine's electricity rates by 36%. Nationally, demand may double by 2028. Virginia, a data center hub, has seen rate hikes, water shortages, and local heat spikes. States like Georgia and Illinois are considering similar pauses, and project cancellations quadrupled in 2025 amid protests.

For Jay, the veto is a win. Town officials celebrate the promise of temporary and permanent jobs. But critics fear Maine is repeating Virginia's mistakes. The legislature reconvenes April 29 for Veto Day; overriding Mills requires two-thirds majorities in both chambers, a tough lift given fractured Democratic unity. If it fails, data centers move ahead unchecked. If it succeeds, Maine leads on regulation. Either way, the balance between economic revival and energy sustainability remains precarious.

Source: Webpronews