Mills Undecided on Data Center Moratorium, Pushes for Jay Carveout Amid Water Use Concerns

**TL;DR** Governor Janet Mills remains undecided on a bill imposing a statewide moratorium on new data center construction, simultaneously advocating for an exemption for a proposed project in Jay to create jobs. Her decision navigates the balance between resource concerns and local economic needs.

Maine's Legislature recently passed a bill designed to halt new data center construction across the state. This legislation, currently awaiting Governor Mills' signature, reflects a growing statewide discussion regarding the environmental impact and resource demands of these large computing facilities. Mills now has a 10-day window to either sign the bill, veto it, or allow it to become law without her direct action.

The proposed bill, if enacted, would impose a moratorium on all new data center construction in Maine until fall 2027. Data centers, which are specialized buildings housing networked computer servers, store, process, and distribute data crucial for modern digital infrastructure, including cloud computing and artificial intelligence. Governor Mills has specifically expressed concerns over the legislation’s lack of a carveout for a planned data center project in Jay. She articulated her desire for this exemption to boost jobs in the economically challenged town.

Water usage emerges as a primary concern for the Governor regarding data center operations. Mills drew a direct comparison to the town's industrial past, noting that the former Jay paper mill consumed approximately 40 million gallons of water per day. This historical context highlights the substantial resource demands that large industrial facilities, including potential data centers, could place on local infrastructure. Mills currently evaluates the viability of a data center project within such resource constraints.

Mills’ final decision will significantly shape Maine's approach to technology infrastructure development in the coming years. It will also establish a precedent for how the state balances critical environmental considerations, particularly water and energy consumption, with targeted economic revitalization efforts in communities facing job losses, such as Jay. All stakeholders now closely watch for her definitive action on the bill.