Earlier this month, Maine was firmly on track to become the first state to institute a moratorium on AI data centers.
The state’s Democrat-controlled legislature officially passed a bill that would ban data centers that carry a load of 20 megawatts or more until November 1, 2027, and create a 13-member council to evaluate the impact of data centers. The bill had moved on to Governor Janet Mills for approval.
But this weekend, Mills vetoed the bill, and Maine joined a growing list of states that have tried and failed to instate a data center moratorium.
Mills’ opposition to the moratorium stems from a single data center project planned in a small town in Franklin County.
“A moratorium is appropriate given the impacts of massive data centers in other states on the environment and on electricity rates,” Mills wrote in a letter announcing her veto decision. “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.”
The Town of Jay had been reeling from the job loss following the 2023 closure of a mill, and according to Mills, had been looking forward to the hundreds of temporary construction jobs and the several permanent positions that would be created by the data center that is planned for construction on the site of the old mill. Mills said that officials from the Town of Jay, Franklin County Commissioners and the regional Chamber of Commerce all sent letters to her expressing support for the data center project and asking for an exemption.
“I supported the exemption and would have signed this bill if it had included it,” Mills said.
Although she vetoed the bill, Mills announced that she would sign a separate bill that would block data center projects from participating in some state tax incentive programs and would still establish a council that would “examine and plan for the potential impacts of large-scale data centers in Maine.”
If it had passed, the Maine bill would have been the first significant regulatory outcome in the U.S. of rising public dissent against AI and the unprecedented data center buildout it has led to. Artificial intelligence has become a concept particularly unpopular in the public eye, in large part due to its negative impact on mental health, war, the environment, and the job market.
On top of that, local activists around the country are also staunchly against data center projects, worried about the soaring utility bills, water shortages, air pollution and increased local temperature often associated with the mega structures. In some instances, the opposition has even turned violent, like in Indianapolis, where a shooting took place at the home of a local politician who is in favor of a controversial local data center project. Just a few days after the Indianapolis incident, OpenAI CEO Sam Altman’s home in San Francisco was hit with a molotov cocktail.
A big tenet of the anti-AI data center push calls for moratoriums on new project developments to give researchers and policymakers time to catch up to the rapidly evolving technology and understand its true impact on local communities, human health, the economy, and the environment. Moratorium supporters claim that with a clearer understanding of AI’s impact, governments can introduce adequate guardrails to ensure the responsible development of these AI data centers.
Mills’ decision in Maine could soon be judged at the ballot box. The governor is running for the Democratic Senate seat in the upcoming Maine primaries, and is currently trailing her opponent Graham Platner in polls. Platner had recently told the press that he thinks Mills should sign the bill into law.
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