vetoes

April 24 (UPI) — Maine Gov. Janet Mills on Friday vetoed a bill that would have paused artificial intelligence data center construction in the state for 18 months.

Mills said she decided to veto it because it would have potentially harmed a permitted and in progress data center expected to create hundreds of jobs, both for construction and once the center opens.

The project, a $550 million data center in Jay, Maine, is a multi-year effort to redevelop the former Androscoggin Mill, which was damaged in a 2020 boiler explosion and then closed in 2023, took with it hundreds of jobs and 22% of the town’s tax revenue.

The bill would have been the first in the country restricting or slowing the spread of large-scale data centers required for power-hungry AI systems, which have driven up the cost of both electricity and water for residents living near them, NBC News and Politico reported.

“A moratorium is appropriate given the impacts of massive data centers in other states on the environment and electricity rates,” Mills said in a press release.

“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 said.

There are more than 5,000 data centers in the United States — more than any country in the world — and that number has grown significantly in the last four years as artificial intelligence has become a focus the tech industry.

While many state and local leaders have started to respond to concerns among residents about the huge amounts of electricity needed to power AI data centers and the huge amounts of water needed to keep them cool, as have some members of Congress.

As states have contemplated increased regulation and scrutiny from tech and AI companies, President Donald Trump at the same time has worked to keep the cuffs of tech companies because they “must be free to innovate without cumbersome regulation,” he said in December.

“Excessive state regulation thwarts this imperative,” Trump said in an executive order meant to prevent states from creating new regulations.

Mills said she worked with Maine’s legislature to carve out an exemption for the data center in Jay but was unsuccessful, so she vetoed the law.

The development in Jay, she said, is under contract and permitted, and is expected to create 800 construction jobs, more than 100 high-paying permanent jobs and “substantial tax revenue” for the Town of Jay.

In a letter informing the legislature that she planned to veto the bill, Mills said she plans to issue an executive order to establish a council to study the impacts — real and potential — of data centers in Maine.

“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,” Mills said.

“Given the serious conversations about data centers here and around the country, I believe this work should commence without delay,” she told legislators.

Reporting from Sacramento — Gov. Jerry Brown on Wednesday vetoed a bill that would have barred medical marijuana dispensaries within 600 feet of homes, saying it stepped on the powers of cities and counties that already have authority to regulate pot shops.

The governor also signed 28 measures into law, making it easier for California firms to sell wine over the Internet and allowing bars to infuse alcohol with fruits and vegetables for use in cocktails.

Brown has until Oct. 9 to act on nearly 600 bills sent to him by the Legislature this year and has already wielded his veto pen several times, complaining about the state imposing too many standards on communities and families.

On the medical marijuana issue, the governor noted that he had previously signed a measure giving cities and counties clearer authority to regulate the location and operation of dispensaries.

“Decisions of this kind are best made in cities and counties, not the State Capitol,” Brown wrote in his veto message.

The bill was SB 847, by state Sen. Lou Correa (D-Santa Ana), who said he wanted to allow cities to chose their own regulations and to protect children living near such facilities from second-hand smoke.

The governor signed a bill Wednesday allowing wine merchants without stores to obtain a special state license to sell to customers over the Internet or by telephone or direct mail. Assemblyman Das Williams (D-Santa Barbara) introduced AB 623 because current law provides for an alcohol wholesaler’s license but requires holders to periodically sell to other retailers, even if they only want to sell directly to customers on the Internet.

The governor also signed a measure eliminating a state prohibition against bars and restaurants providing infused alcoholic beverages, with fruits, vegetables, herbs and spices added to spirits for flavor.

Sen. Mark Leno (D-San Francisco), author of SB 32, said the restrictions were decades old and were intended to address health concerns about the infusion process. Modern methods make the practice safe, he said.

On another measure, Brown exercised his veto pen and took a swipe at its author in the process.

With budget cuts forcing many state parks to close or reduce operations, Sen. Tom Harman (R-Huntington Beach) proposed that the state post details of potential park closures on a website and respond to any efforts from the private sector to help keep them open.

Brown said the idea in Harman’s bill, SB 386, was good but didn’t require a state law.

“What parks do need is sufficient funding to stay open — something I feel compelled to note the author and his colleagues refused to let the people vote on,” Brown wrote in his veto message, referring to Republican opposition to putting tax extensions on the ballot.

patrick.mcgreevy@latimes.com