Maine Governor Janet Mills on Friday vetoed legislation that would have made Maine the first U.S. state to impose a moratorium on large new data centers, blocking what would have been an 18-month freeze on construction of such facilities.

The Democratic governor's decision comes as local opposition to electricity-intensive data centers grows across the country, with approximately a dozen states now considering various restrictions on data center development. The vetoed bill would have halted construction of large-scale data centers for a year and a half.

Mills indicated in her veto letter that while a moratorium might have been appropriate under different circumstances, the proposed ban would have interfered with an ongoing data center project already under development in Maine. The governor's office cited concerns about disrupting existing business commitments and investments.

The veto highlights the challenging balance state leaders face regarding data center development. While these facilities can bring millions of dollars in investment and tax revenue to states, they also raise concerns about their impact on local electricity grids and household energy costs due to their substantial power consumption.

Mills, who is running for the U.S. Senate, joins other governors grappling with the rapid expansion of data centers driven by increased demand for cloud computing and artificial intelligence services. The facilities have become a contentious issue as communities weigh economic benefits against environmental and infrastructure concerns.

The Maine decision reflects broader national tensions over data center proliferation, as states attempt to balance attracting technology investment while addressing constituent concerns about power grid strain and rising energy costs.