Maine Governor Rejects First-in-Nation Bill Pausing Data Centers

Maine Governor Janet Mills vetoed a first-in-the-nation bill, LD 2003, which aimed to impose a short-term moratorium on new data center construction and operation for facilities over 20 megawatts until November 1, 2027. The Democratic governor stated her primary reason for the veto was the bill's failure to include an exception for a $550 million data center project proposed in Jay, Maine. This project, which is already under contract and has received several permits, is critical for the Town of Jay, which has faced economic hardship following the closure of a local paper mill. Mills highlighted that the Jay project is expected to generate over 800 construction jobs, at least 100 permanent high-paying jobs, and substantial property tax revenue. She noted strong support from the Town of Jay, the regional chamber of commerce, and county commissioners, and emphasized the developers' commitment to revitalizing the mill site using existing infrastructure to mitigate environmental and ratepayer impacts. Despite the veto, Governor Mills acknowledged the appropriateness of a moratorium given the environmental and electricity rate impacts observed in other states. She announced plans to issue an executive order to establish a council dedicated to studying the data center industry's effects on Maine. Representative Melanie Sachs, the bill's sponsor and chair of the Joint Committee on Energy, Utilities, and Technology, criticized the veto, arguing that the bill would have allowed the state to develop necessary regulations and protect ratepayers and the electric grid. The legislation faced opposition from industry groups, including the Maine State Chamber of Commerce. While a statewide moratorium was rejected, Governor Mills did sign a separate bill that prevents data center projects from accessing the state's business development tax incentives.