Maine governor vetoes landmark data center ban

Governor Janet Mills of Maine vetoed LD 307, a bill that proposed a moratorium on data centers larger than 20 megawatts until November 2027, which would have been the nation's first such ban. Mills stated in her veto letter that while a moratorium is appropriate due to environmental and electricity rate impacts seen in other states, the bill failed to include an exemption for a specific data center project in the Town of Jay, which has strong local and regional support. This project, slated for the former Androscoggin Mill site in Franklin County, is a $550 million redevelopment expected to create over 800 construction jobs and 100 permanent high-paying jobs, utilizing existing infrastructure and planning for solar power. Rep. Melanie Sachs, the bill's sponsor, criticized the veto as "simply wrong," arguing that it disregards recommendations from the Maine Artificial Intelligence Task Force and the will of many Maine residents. Sachs warned of potential consequences for ratepayers, the electric grid, and the environment. Conversely, Americans for Prosperity, a libertarian advocacy group, praised Mills for supporting Maine's economic future. Mills reiterated her support for an exemption process that was not included in the final bill. While she vetoed the ban, she intends to establish a Maine Data Center Coordination Council via executive order to assess policy tools for regulating data centers. Environmental groups like Maine Conservation Voters and Our Power expressed strong disappointment, asserting that the veto prioritizes developers over environmental safeguards and that Maine missed an opportunity to establish a proper regulatory framework. They suggest that local communities may now take action individually. Lawmakers could attempt to overturn the veto, but it is unlikely to pass given previous vote counts. Mills did sign a separate bill, LD 713, which excludes data centers from certain tax incentive programs.