Maine governor vetoes data center moratorium bill

Maine Governor Janet Mills has vetoed LD 307, a legislative bill that would have implemented the first statewide moratorium on new data centers in the US. A moratorium is defined as a temporary prohibition on an activity, and this specific bill would have temporarily halted the issuance of permits for new computing infrastructure facilities. The veto blocks what would have been the country’s first statewide pause on the construction of these data centers.

Under the provisions of LD 307, the temporary prohibition on issuing permits for new data centers would have lasted until November 1, 2027. To study the impacts of these facilities, the bill also included a specific provision to establish a 13-person council. This proposed council would have been responsible for studying data center construction and making recommendations on how to manage the development of these facilities. Maine’s legislative debate occurs as other states, including New York, have also considered implementing similar moratoriums on new data center development. These discussions in other states often focus on the environmental and electricity rate impacts of data centers.

In a letter sent to the state legislature, Governor Mills explained her decision, making a clear distinction between her support for the general concept of a pause and her objections to this specific bill. Mills stated that pausing the development of new data centers would indeed be appropriate, citing the environmental and electricity rate impacts that massive data centers have had in other states. However, she noted that she would have signed the bill if it had included an exemption for a data center project in the Town of Jay. According to Mills, that project enjoys strong local support from its host community and region.

The decision to veto the bill was opposed by its sponsor, Melanie Sachs, a Democratic state representative. Sachs warned of the decision’s potential impact on the state’s electricity customers, or ratepayers, as well as the environment and the electric grid. Sachs stated that the veto “poses significant potential consequences for all ratepayers, our electric grid, our environment, and our shared energy future.”

Why it matters

The veto prevents the first statewide moratorium on data centers in the U.S., highlighting the ongoing tension between environmental and ratepayer concerns and the push for specific local development projects.