Janet Mills vetoes Maine data center ban

Maine Governor Janet Mills has vetoed a bill that aimed to establish a moratorium on large new data center developments across the state. The proposed legislation, passed by the Democratic-led Legislature, would have halted approvals for data centers requiring over 20 megawatts of power until October 2027, allowing a state-appointed council to assess their impact on the local power grid, electricity costs, air, and water. In her veto letter to the Maine Legislature, Governor Mills expressed support for a temporary moratorium but cited the bill's failure to include an exemption for a specific data center project in Jay as her primary reason for the veto. This project, located at the former International Paper mill site, is a $550 million development expected to create hundreds of construction and permanent jobs, as well as generate property tax revenue for the town. Mills also announced plans to issue an executive order establishing a council to further examine data center impacts in Maine. Additionally, she has signed a separate bill that prohibits data center projects from participating in the state's business development tax incentive programs. Democratic Rep. Melanie Sachs, who sponsored the vetoed bill, criticized Mills' decision, arguing it would have significant consequences for ratepayers, the electric grid, and the environment. The decision comes amidst growing local opposition to data centers and a national debate over their environmental and energy demands.