Maine Governor Rejects Statewide Data Center Moratorium Bill

capacity, which would have remained in place until November 1, 2027. Maine Governor Janet Mills has vetoed a bill that would have introduced the first statewide moratorium on data centers in the US. LD307 had passed both legislative chambers, gaining approval from the House of Representatives in April and the Senate on April 14. The bill sought to impose a temporary moratorium on state authorities accepting applications for data centers with capacities above 20MW, in place until November 1, 2027.

“A moratorium is appropriate given the impacts of massive data centers in other states on the environment and on electricity rates. But the final version of this bill fails to allow for a specific project in the Town of Jay that enjoys strong local support from its host community and region,” Governor Mills wrote to the Legislature.

“The 2023 closure of the Androscoggin Mill dealt a devastating blow to the Town of Jay and its surrounding area. As a long-time resident of Franklin County, I know well how critical the mill was to generations of working families, and how important it is – and how challenging it has been – to promote reinvestment and job-creation at the former mill, which is a brownfield site. After prior redevelopment efforts failed, the Town of Jay worked for two years on a $550 million data center redevelopment project to finally bring jobs and investment back to the mill site.”

“I believe it is necessary and important to examine and plan for the potential impacts of large-scale data centers in Maine, as the use of artificial intelligence becomes more widespread. Given the serious conversations about data centers here and around the country, I believe this work should commence without delay,” the governor wrote. In addition, the governor announced she has signed LD713, which prohibits data center projects from accessing the State of Maine’s business development tax incentive programs.