Daily Digest — April 25, 2026
Maine Governor Vetoes Nation's First State-Level Data Center Moratorium
Maine Governor Janet Mills on April 24 vetoed LD 307, a bill that would have established the first state-level moratorium on new data center construction in the United States. The legislation, which passed both chambers of the Democrat-controlled state legislature, would have paused permitting for data centers exceeding 20 megawatts until November 2027 and created a Data Center Coordination Council to develop a regulatory framework, according to the Portland Press Herald.
Governor Mills stated she would have signed the bill had it included an exemption for a $550 million data center project at the former Androscoggin Mill site in Jay, Franklin County. According to News Center Maine, the Jay project is expected to generate:
- Over 800 construction jobs
- At least 100 permanent high-paying positions
- Substantial property tax revenue for the town
The governor announced plans to issue an executive order establishing a council to study data center impacts in Maine, similar to a provision in the vetoed bill. Mills also signed LD 713 into law, which removes eligibility for new data center projects from the state's business equipment tax exemption and Dirigo business incentive program, as reported by the Portland Press Herald.
Democratic State Representative Melanie Sachs, the bill's sponsor, criticized the veto, stating it "resists the will of a majority of Maine people" and warning of adverse effects on ratepayers, the electric grid, and the environment, according to ABC News. Environmental groups including Our Power and Maine Conservation Voters also condemned the decision. The bill could still become law through a two-thirds override vote in both chambers, though it previously lacked that level of support.
As reported by Freedom 96.9, at least 11 U.S. states are considering similar legislation to halt or restrict data center development, and federal legislators including Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez have introduced legislation to pause data center construction nationally.
Nation's first state moratorium on data centers vetoed by Maine's governor - ABC News
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Ferguson, Missouri Resets Approval Process for $1.8 Billion Data Center Project
The City of Ferguson, Missouri, has initiated a procedural reset for "Project Butterfly," a proposed $1.8 billion data center development at the former Emerson Electric headquarters on West Florissant Avenue. According to KSDK, the city council will hold a new "First Reading" on Monday, delaying an expected final vote by at least two weeks. The delay coincides with the swearing in of new Mayor Adrian Shropshire, requiring the proposal to be reintroduced, as reported by First Alert 4.
Community opposition has been organized through a group called "Fighting for Ferguson." At a town hall forum, environmental attorney Steve Jefferey, former general counsel for the Missouri Department of Natural Resources, presented a financial critique of the proposed tax abatement structure, according to KSDK. Key concerns include:
- An estimated $71 million in foregone revenue for the Ferguson-Florissant School District over 15 years
- $6.2 million in losses for the Jennings School District
- $5.2 million in missed real estate taxes for the City of Ferguson during the first six years
- A 15-year personal property tax abatement with PILOT payments starting at 25% of standard property taxes
- No termination clause in the proposed agreement
Opponents also cited environmental concerns including water demands for cooling, potential utility rate increases, and the impact of an associated gas power plant on a residential area, as reported by KSDK.
Developer SSL Investments, LLC points to potential investment reaching $22 billion, the creation of hundreds of construction jobs and over 350 permanent positions, and utility and sales tax revenues. The Ferguson-Florissant School District has also expressed concerns regarding the tax incentives' impact, according to First Alert 4.
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NAACP Lawsuit and Air Quality Report Heighten Data Center Scrutiny in Mississippi
The NAACP has filed a lawsuit against xAI alleging the company "illegally operated" 27 gas turbines without an air permit at its Colossus 2 data center in Southaven, Mississippi, according to TheGrio. The facility, which powers xAI's chatbot Grok, is situated near homes, schools, and churches, and the lawsuit cites violations of the Clean Air Act.
Separately, the American Lung Association's 2026 "State of the Air" report gave DeSoto County an "F" grade for ozone pollution for the second consecutive year, as reported by the Mississippi Free Press. The Mississippi Department of Environmental Quality last month approved a permit allowing xAI to install 41 permanent gas turbines in DeSoto County, a decision that has been appealed by legal organizations on behalf of residents.
MDEQ spokesperson Jan Schaefer stated the agency evaluates permits in compliance with state and federal regulations and does not issue permits without compliance, according to the Mississippi Free Press. Tennessee State Rep. Justin Pearson is among elected officials advocating for a nationwide moratorium on new data center developments and legislation requiring renewable energy use and Community Benefit Agreements.
Wisconsin Regulators Require Data Centers to Cover Full Energy Costs
The Wisconsin Public Service Commission (PSC) unanimously approved a new rate structure requiring large data centers served by We Energies to cover 100% of the costs of new power generation, solar farms, and fuel built to serve them. The decision, described by PSC Chair Summer Strand as "unlike anything the commission has seen before," followed a 13-month review and over 2,000 public comments, according to WPR.
Key modifications to We Energies' original proposal include:
- Extending data center contract agreements from 10 to 15 years
- Lowering the energy demand threshold from 500 MW to 100 MW
- Eliminating a "capacity-only" option that would have allowed data centers to pay only 75% of power plant costs
Commissioner Kristy Nieto stated that "existing Wisconsin customers should not pay a single cent to subsidize the service of data centers," as reported by Wisconsin Watch. The policy affects upcoming projects including Vantage's data center in Port Washington and Microsoft's facility in Mount Pleasant, which collectively could require energy comparable to all current We Energies customers.
Microsoft's Jeff Riles, senior director of energy markets, stated the company is committed to paying its full share and that the tariffs provide a clear path for continued investment in Wisconsin, according to WPR. The PSC is expected to rule on a similar proposal from Alliant Energy regarding Meta's data center campus in Beaver Dam later this spring.
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Related Digital Secures $16 Billion in Financing for Oracle Data Center in Michigan
Related Digital has secured $16 billion in financing for an Oracle data center project in Michigan, according to Reuters. The financing reportedly involved bond issuances, with a substantial portion to be acquired by Pimco, after some major banks declined participation, as reported by Observer Voice.
The Michigan project is part of Oracle's broader data center expansion tied to its $300 billion partnership with OpenAI. According to Observer Voice, banks including JPMorgan Chase have encountered internal concentration limits on exposure to Oracle, creating syndication challenges for data center loans across multiple states including Texas and Wisconsin.
