Maine Governor Vetoes Data Center Moratorium Bill
Governor Janet Mills vetoed a bill that would have imposed a temporary ban on large data centers in Maine, citing the need to support a significant project in Jay.
Maine Governor Janet Mills has vetoed legislation that sought to impose a temporary moratorium on the construction of large data centers in the state. The bill, known as LD 307, aimed to halt approvals for data centers requiring more than 20 megawatts of power until November 2027, while a newly established council assessed their impact on the environment and electricity rates.
In her veto letter to the Legislature, Governor Mills expressed support for a temporary moratorium but highlighted the bill's failure to exempt a proposed data center project in the town of Jay.
The proposed data center in Jay is expected to create over 800 construction jobs and at least 100 high-paying permanent positions, providing substantial property tax revenue to the town.
The closure of the Androscoggin Mill in 2023 significantly impacted Jay's economy, eliminating hundreds of jobs and reducing the town's tax base by approximately 22%.
Governor Mills announced plans to issue an executive order establishing a council to examine the impact of large-scale data centers in Maine, emphasizing the importance of planning for their potential effects as artificial intelligence becomes more widespread.
The veto has drawn criticism from some legislators and groups concerned about the environmental and economic implications of large data centers. Representative Melanie Sachs, the bill's sponsor, stated that the decision poses significant potential consequences for ratepayers, the electric grid, the environment, and Maine's shared energy future.
Maine's bill was the first state-level moratorium on data centers to pass both legislative chambers in the United States. Similar proposals have been introduced in other states but have not advanced as far.
The debate over data centers reflects growing concerns about their substantial energy consumption and environmental impact, especially as demand for artificial intelligence and cloud computing services increases.