Mills Vetoes Moratorium on Data Center Construction and Bill to Automatically Unseal Criminal Records

Governor Janet Mills of Maine has vetoed LD 307, a bill that sought to implement a temporary moratorium on the construction of AI data centers across the state until November 2027. The bill had previously garnered support and passed through both the Maine Senate and House with Democratic backing. Mills justified her veto by explaining that while a moratorium might be appropriate given the environmental and electricity rate impacts observed in other states, the final version of LD 307 lacked a crucial exemption. This exemption was intended for a data center project planned for the former Androscoggin Mill in the Town of Jay, a project she noted had strong local and regional support. Mills indicated she would have signed the bill if this specific carve-out had been included. Discussions around data center development frequently involve a debate between potential economic benefits and job creation, versus concerns such as increased energy costs for residents, strain on local water systems, and environmental degradation. Mills emphasized that any proposed data centers in Maine, including the Jay project and a separate one in Sanford, would still be subject to rigorous federal and state energy interconnection requirements and Maine’s comprehensive environmental permitting standards, ensuring compliance with regulations on traffic, noise, and utility services to prevent harm to natural resources and water quality. While vetoing LD 307, Governor Mills did sign LD 713, which will prevent data centers from receiving certain tax incentives available to other businesses. She also announced a separate veto of LD 1911, a bill unrelated to data centers concerning the automatic sealing of criminal records.