4/27 To protect Jay mill project, Maine Governor Janet Mills vetoes data center moratorium

Maine Governor Janet Mills has vetoed LD 307, a bill that would have enacted the United States' first statewide moratorium on data center construction. The proposed legislation sought to freeze state and local permits for data centers exceeding 20 megawatts until November 2027, an 18-month pause. Governor Mills' decision was primarily driven by the need to protect a proposed $550 million data center redevelopment project at the former Androscoggin paper mill in Jay, a town struggling since the mill's closure in 2023. She had previously celebrated the project, for which some permits are already in place, as a traditional mill town comeback story. The governor stated on Friday that while a moratorium is appropriate, it could not proceed without a carve-out for the Jay project, as the developer had warned that such a ban would kill the initiative. Jay's town manager supported the project, citing its potential to bring hundreds of jobs and millions in tax revenue. However, the bill's sponsor, Representative Melanie Sachs of Freeport, argued that rapid data center expansion in other states has led to increased electric bills for ratepayers, along with light, noise, and greenhouse gas emissions, without significant local job creation. LD 307 also aimed to create a coordinating council comprising state agencies focused on power, water, and environmental impacts to establish necessary "guardrails" before widespread data center permitting. Following her veto, Governor Mills announced plans to achieve a similar outcome by establishing this coordinating body through executive action, leaving the possibility of further legislative attempts next session open.