Maine Governor Rejects Data Center Moratorium: What This Means for U.S. Tech Growth

A bill that would have effectively banned new data centers in Maine collapsed after the governor refused to sign it, leaving no U.S. state to have yet prohibited data center construction.

Reuters reported on April 24 that Democratic Gov. Janet Mills vetoed the measure, which would have temporarily halted construction of large new data centers.

The bill, introduced by Democratic state Rep. Melanie Sachs, passed the legislature on April 14 with some Republican support. It sought to suspend new permits for data centers of 20 megawatts (MW) or more through November 2027 while a state-appointed panel analyzed the projects’ effects on the local power grid, electricity rates, air quality and water quality.

Mills said the bill would have made Maine the first state to stop large-scale new data center construction and would have disrupted jobs tied to projects already underway.

In a letter to lawmakers, she wrote, “Given the effects large data centers in other states have had on the environment and electricity costs, a temporary construction pause would be appropriate. But the final version of this bill would not even allow the project in Jay, which has strong support from the local community and surrounding areas.”

She added that the $550 million (approximately 733.33 billion KRW) data center redevelopment now underway in Jay is expected to create more than 800 construction jobs, at least 100 high-paying permanent positions and boost property tax revenue. Mills has promoted the project as a key part of her efforts to revive the local economy.

Although Mills said she agreed with the bill’s intent, she vetoed it to protect that specific local project. Lawmakers are expected to consider whether to introduce an amended bill that would include exemptions.

The episode drew attention amid rising opposition to new data centers across the U.S. ahead of this year’s midterm elections. Observers said that if Maine had passed the bill, other states might have followed.

Twelve states are now weighing moratoriums on data centers, including Virginia — one of the world’s most data-center-dense regions — and Georgia, which has emerged as a hub in recent years by offering low electricity rates and substantial tax incentives.

Maine currently hosts two data centers.

Reporter Dae-jun Im, ydj@aitimes.com