Maine Governor Janet Mills has vetoed a bill that would have temporarily limited the development of large data centers across Maine, despite expressing support for a broader pause on such projects, according to Maine's website.
The governor said she would have approved the legislation if it had included an exemption for a $550 million data center redevelopment already underway at the former Androscoggin Mill in Jay, a project backed by local officials and seen as critical to economic recovery in the region.
Mills emphasized that while a moratorium makes sense due to concerns about environmental impact and rising electricity costs seen in other states, the bill in its final form failed to account for the Jay project’s potential benefits. The redevelopment is expected to bring hundreds of construction jobs, create at least 100 permanent positions, and restore a major portion of the town’s lost tax base following the mill’s closure in 2023.
The site says that Mills plans to move forward with an executive order to study the impact of large-scale data centers in Maine. She also signed separate legislation barring such projects from receiving state business tax incentives, signaling a cautious but measured approach to managing the industry’s growth.
“A moratorium is appropriate given the impacts of massive data centers in other states on the environment and on electricity rates. 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,” she wrote.
“The 2023 closure of the Androscoggin Mill dealt a devastating blow to the Town of Jay and its surrounding area. As a long-time resident of Franklin County, I know well how critical the mill was to generations of working families, and how important it is – and how challenging it has been – to promote reinvestment and job-creation at the former mill which is a brownfield site. After prior redevelopment efforts failed, the Town of Jay worked for two years on a $550 million data center redevelopment project to finally bring jobs and investment back to the mill site.”
“I believe it necessary and important to examine and plan for the potential impacts of large-scale data centers in Maine, as the use of artificial intelligence becomes more widespread. Given the serious conversations about data centers here and around the country, I believe this work should commence without delay,” she concluded.
Meanwhile we wrote last week that the outlook for the US AI revolution looks increasingly more dim.
That's because, as Canaccord Genuity analyst George Gianarikas writes, "the American data center boom is hitting a formidable wall of logistical friction." He is referring to the latest outlook by Sightline Climate, which is also reinforced by recent articles from Bloomberg and others, and reveals a sobering reality for 2026: nearly half of the nation's planned 16-gigawatt capacity faces cancellation or delay, with only 5 gigawatts currently under construction.
This inertia stems from a volatile mix of local permitting hurdles, community resistance, and a desperate reliance on overextended global supply chains for critical components like transformers and helium.
That's right: half. Despite $700BN+ of expected 2026 hyperscaler capex, nearly half of the data centers scheduled to begin operations in the US in 2026 "will either face delays or outright cancellations."
The data, which comes from Sightline Climate's 2026 Data Center Outlook, suggests that just 30% - 50% of the ~16 GW of planned US capacity for the year will face risks, with only ~5 GW currently under construction!