Janet Mills vetoes bill to temporarily ban data centers in Maine

Governor Janet Mills vetoed a bill (LD 307) that would have established Maine as the first state to implement a temporary ban on new data center development until November 2027. The legislation, which had cleared both chambers of the state Legislature, aimed to pause permitting and approvals for new data centers while a Data Center Coordination Council assessed their potential impacts in Maine. Mills' action allows several proposed data center projects, including one at the former Androscoggin Mill in Jay and another in Sanford, to proceed. The Governor justified her veto by highlighting the economic benefits, specifically for the Jay project, which she argued enjoys strong local support and could revitalize the town. Mills stated she would have signed the bill if an amendment allowing for the Jay project's exemption had been approved by lawmakers. Following her veto, Mills announced plans to issue an executive order to create a commission to study data center impacts, similar to a provision in the vetoed bill. The decision drew criticism from Rep. Melanie Sachs, the bill's sponsor, who accused Mills of disregarding the will of the majority of Maine citizens and warned of adverse effects on electricity rates, the power grid, and the environment. Environmental advocacy groups, including Our Power and Maine Conservation Voters, also condemned the veto, asserting that Mills prioritized developers over constituent and environmental concerns. Conversely, Tony McDonald, owner of the Jay project, expressed relief, confirming his plans to begin demolition for the data center in July, and lauded the Governor for listening to the facts. While the bill could still become law if overridden by a two-thirds majority in both the House and Senate, it previously lacked that level of support. In a related action, Governor Mills also signed LD 713 into law, which will remove eligibility for new data center projects from the state's business equipment tax exemption and the Dirigo business incentive program, addressing some concerns regarding tax incentives for the industry.