Maine is poised to become the first state in the nation to temporarily ban the development of large data centers.
But Gov. Janet Mills has said the measure needs to have an exemption for a proposed $550 million project at the former Androscoggin paper mill in Jay to get her support.
"The people of Jay need those jobs, with appropriate guardrails on preserving water resources, electricity resources, local generation and all those things," Mills told reporters during an event in Bangor last week.
Mills' office did not respond to an email Monday asking if the governor intends to veto the bill.
Data centers have proliferated across the U.S. in recent years, in response to incredible computing demands from artificial intelligence software. The developments have increasingly met backlash from communities concerned about their huge appetite for electricity, water and their environmental impact.
The proposed bill passed by the Maine Legislature earlier this month would enact an 18-month moratorium on new data centers using more than 20 megawatts of power.
In the meantime, a coordinating council of government officials, experts and other stakeholders would come up with policy recommendations and guidelines to limit the impact of future data centers in the state.
The bill carried a $95,000 price tag to cover the potential cost of the council, and was approved by the Legislature's appropriations committee on Monday.
While Mills said she appreciates the intent of the bill, she has also said the Jay project would bring much-needed jobs, tax revenue and economic development to the region.
The mill developer plans to use the mill's existing hydropower and connections to the electric grid. The mill, which employed 230 people, closed in 2023.
