Maine Legislature does not override Gov. Mills’ veto of data center moratorium

The Maine Legislature did not gather enough votes on Wednesday to override Governor Janet Mills' veto of LD 307, a bill that would have imposed the first temporary statewide moratorium on data centers in the United States. Overriding the veto required a two-thirds majority in both the Maine House and State Senate. Governor Mills, while acknowledging the need to evaluate data center impacts on resources, the environment, and ratepayers, vetoed the bill because it failed to include an exemption for a specific $550 million data center redevelopment project at the former Jay Paper Mill. She emphasized the project's importance to the town of Jay and Franklin County, citing its potential for job creation and property tax revenue. Mills noted that the project developers are committed to using existing industrial infrastructure to mitigate adverse impacts. Following the sustained veto, Governor Mills signed an executive order establishing the Maine Data Center Advisory Council. This 15-person council is tasked with making recommendations on large-scale data center development to protect ratepayers, maintain electric grid reliability, minimize environmental impacts, and promote responsible economic development. The executive order also directs the Department of Energy Resources and the Maine Public Utilities Commission to identify ways to protect ratepayers from potential energy cost increases, as recent data from the U.S. Energy Information Administration suggests data centers could raise Maine's electricity rates by 36%. The council is expected to deliver its policy recommendations by January 29, 2027.