Maine Gov. Janet Mills vetoed the nation’s first proposed statewide data center moratorium bill Thursday, blocking a construction freeze set to run through Nov. 1, 2027.
Mills, a Democrat seeking her party’s nomination to challenge Republican Sen. Susan Collins, said she would have signed L.D. 307 but for its lack of an exemption for a planned $550 million data center at the former Androscoggin Mill in Jay, which holds “strong local support.”
The bill also proposed a 13-member council to study data center impacts on infrastructure and energy. Mills said she will establish a similar commission by executive order.
Why It Matters For Energy Markets
Surging AI-driven compute demand is straining regional power grids nationwide. Sponsor Rep. Melanie Sachs (D) warned the veto carries “significant potential consequences for all ratepayers, our electric grid, our environment, and our shared energy future.”
Sachs noted that Mills’ own Maine Artificial Intelligence Task Force had explicitly recommended the state develop a response plan for new data center development.
In February, New York lawmakers proposed a similar three-year moratorium on new data center construction.
The veto comes as the Trump administration warns that China is closing the gap in the AI race, a competition that depends heavily on U.S. data center infrastructure.
Photo Courtesy: Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Recent Comments