The Democratic Governor of Maine on Friday vetoed the first moratorium adopted by state elected officials on the construction of large data centers, citing the lack of exemption for a local project. Governor Janet Mills announced the veto, as eleven other states are considering similar measures amid growing concerns about the impact of AI-related infrastructure and soaring electricity prices.
The law, passed in mid-April with bipartisan support, prohibited the issuance of permits for data centers with a capacity exceeding 20 megawatts until November 2027 in this northeastern state. The governor acknowledged the need for a moratorium considering the environmental and electricity price impacts elsewhere but justified the veto by citing the local congress’s refusal to make an exception for a $550 million local project to convert an old paper mill in Jay.
Governor Mills will create an executive commission to study the impacts of data centers on the power grid, residents’ bills, and the environment as outlined in the law, but without a freeze on permits pending project reviews. Democratic representative Melanie Sachs criticized the decision as “simply wrong.”
By vetoing the moratorium, Governor Mills is “resisting the will of a majority of Maine residents,” she said. The bill had garnered support from thousands worried about electricity price hikes. Spending on data center construction in the US has doubled in two years, with projections exceeding $60 billion by 2025 compared to under $7 billion in 2023, according to professional data platform ConstructConnect.
Maine is one of the states experiencing significant increases in residential electricity rates in recent years, according to the US Energy Information Administration (EIA). In two state cities, data center projects were rejected at the end of 2025 by officials who accused developers of downplaying their water and electricity consumption levels, as reported by local media.
Context: – The Governor of Maine vetoed a moratorium on large data center construction due to lack of exemption for a local project, amidst concerns about environmental impact and electricity prices. – The state had seen a surge in data center projects but faced criticism for the potential strain on resources.
Fact Check: – Data center spending in the US has indeed grown rapidly, reaching billions of dollars annually. – There have been concerns about the environmental and resource impact of data centers, leading to opposition in some communities.
