Maine Governor Janet Mills just vetoed a bill that would ban all new data center projects in the state. This moratorium applies to all data centers that exceed 20MW of consumption and would have halted all approvals until October 2027, while a state council studies their impact on the local power and water supply, as well as their effect on surrounding air quality. According to Bangor Daily News, the governor said she supported the temporary moratorium on this power-hungry infrastructure if the legislature exempted a site that’s already under construction in Jay, a town in Franklin County that sits around 60 miles north of Portland.
“A moratorium is appropriate given the impacts of massive data centers in other states on the environment and on electricity rates,” the Democrat governor said in a statement. “But the final version of this bill fails to allow for a specific project in [Jay] that enjoys strong local support from its host community and region.”
The site where the Jay data center is being built was once a paper mill that suffered a catastrophic accident, leading to its closure in 2023. It’s reported that the $550 million project will use existing infrastructure, limiting its impact on the electric grid and energy bills, while also contributing to Jay’s property tax revenue. Furthermore, it’s expected to create 800 construction jobs and open 100 additional high-paying permanent positions once the data center begins operations.
It’s reported that the Democratic governor has never had a veto overturned by the legislature, which is led by the same party. However, the Maine House of Representatives voted against the exemption, 115-29, which is more than enough to meet the two-thirds majority required to override Mills. Aside from disagreeing with the majority of the Maine Democratic Party, this also exposes her to a political challenge as she attempts to secure a nomination as the Democratic contender for a U.S. Senate seat, facing political newcomer Graham Platner.
Despite her move to block the bill, Mills said she will issue an executive order to create a state council to study the impact of data center projects in the state. She also signed a bill that put into law a measure preventing data center projects from taking advantage of the state’s business development tax incentive programs.
Residents and local governments have started pushing back against data center projects after many communities with nearby infrastructure have reported increased electricity costs and poor power quality. It has gotten so bad that President Donald Trump convened some of the biggest hyperscalers at the White House and made them promise to “pay their own way” for their electricity needs.
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