Maine Governor Janet Mills vetoed a bill that would have banned the construction of new data centers larger than 20 megawatts until November 2027. The veto came after lawmakers failed to include an exemption for a proposed data center in the town of Jay, which Mills cited as a key reason for her decision.
Part 1: Immediate Action & Core Facts
Mills vetoes data center ban: Governor Janet Mills vetoed L.D. 307, a bill that would have imposed a temporary moratorium on new data centers in Maine. The bill was the first of its kind in the nation and aimed to address concerns about environmental and electricity rate impacts.
Exemption for Jay project: Mills cited the lack of an exemption for a $550 million data center project in Jay, Maine, as a primary reason for her veto. The project, which would revitalize a former paper mill site, has strong local support and is seen as a critical economic development opportunity for the region.
Part 2: Deeper Dive & Context
Rationale for veto: In her veto letter, Mills acknowledged the need for a moratorium on data centers due to their environmental and economic impacts in other states. However, she argued that the bill's final version failed to account for the Jay project, which would utilize existing infrastructure to minimize adverse effects.
Legislative process: The bill had seen significant debate in the Maine Legislature, with lawmakers attempting to add an exemption process for projects in Jay and Sanford. Mills had previously expressed support for an exemption process, but legislators did not pass an amendment to include it.
Alternative measures: Mills signed another bill, LD 713, which excludes data centers from some tax incentive programs. She also indicated she would sign an executive order to create the Maine Data Center Coordination Council to assess policy tools for regulating data centers.
Local impact: The Jay project is seen as a vital economic opportunity for the town, which suffered the closure of the Androscoggin Mill following a devastating explosion in 2023. The data center project is expected to bring jobs and investment back to the area.
Opposing views: Supporters of the ban argue that data centers consume significant amounts of electricity and can drive up rates for consumers. They also point to environmental concerns, including increased energy demand and potential strain on local infrastructure.
Future steps: Lawmakers will return for a final day of work and could vote to overturn the veto. However, this would require a two-thirds vote in both chambers, which earlier roll calls suggest may not be achievable.