Gov. Mills vetoes bill that would allow a pause on data center projects in Maine

Governor Janet Mills vetoed LD 307 on Friday, a bill that sought to enable a temporary moratorium on data center projects across Maine. In a press release from her office, Governor Mills stated her support for a moratorium due to concerns about environmental impacts and electricity rates, but indicated she would have signed the bill had it included an exemption for a specific data center project in the Town of Jay. The project in Jay is a $550 million redevelopment at the former Androscoggin Mill, which closed in 2023. According to Mills, the project has strong local support, has secured several permits, is under contract, and is anticipated to generate over 800 construction jobs and at least 100 permanent high-paying jobs, in addition to substantial property tax revenue for the town. Mill owner Tony McDonald previously asserted the project would not exceed the former paper mill's electricity or water usage. In her letter to the Maine Legislature, Governor Mills also announced her intention to issue an executive order to establish a council to study the impacts of data centers in Maine, a measure that was also called for in LD 307. She emphasized the importance of planning for potential impacts given the rise of artificial intelligence. Separately, Governor Mills did sign LD 713 into law, which will prevent data center projects in Maine from accessing state business development tax incentive programs. Representative Melanie Sachs, D-Freeport, the bill's sponsor, expressed disappointment with the veto. She argued that LD 307 was designed to allow Maine to thoughtfully respond to the rapidly evolving data center industry, aligning with recommendations from the Governor's own Maine Artificial Intelligence Task Force. Sachs highlighted widespread public concern regarding energy affordability and the strong bipartisan support the bill received, suggesting the veto protects the Jay project at the potential cost of ratepayers, the electric grid, and the environment.