Maine Governor Janet Mills vetoed a bill that would have made Maine the first US state to impose an 18-month moratorium on new large data centers, according to The Guardian, Reuters, and UPI. The decision reflects the difficult trade-off facing political leaders who must weigh the impact of data centers on the environment and household energy bills against the millions of dollars in investment and tax revenue they can bring.
Key Takeaways
Maine Governor Janet Mills vetoed a bill that would have imposed an 18-month moratorium on new large data centers in the state. The decision was influenced by concerns over job creation and tax revenue from an ongoing $550 million data center project in Jay, Maine.
- Maine governor vetoes first US state freeze on new datacenters
- Bill would have paused approvals until October 2027 for centers requiring more than 20 megawatts of power
- Governor supports moratorium but seeks exemption for Jay data center project
- Project expected to create over 800 construction jobs and at least 100 permanent high-paying jobs
The bill, which was passed by Maine lawmakers last week, would have frozen approvals until October 2027 for data centers requiring more than 20 megawatts of power while a state-appointed council analyzed their impact on the local grid, electricity bills, air, and water. Governor Mills stated in a letter to the Maine legislature that she supports a temporary moratorium but would have signed the bill if it had included an exemption for a data center project underway in the town of Jay.
The Androscoggin paper mill in Jay shut down in 2023 after a boiler explosion, leading to hundreds of job losses. The proposed $550 million data center project is expected to create more than 800 construction jobs and at least 100 high-paying permanent jobs, contributing significant property tax revenue to the town, as reported by all three sources.
Governor Mills also plans to issue an executive order establishing a council to examine the impact of data centers in Maine. She has signed a bill to prohibit data center projects from Maine's business development tax incentive programs. The veto comes amid growing opposition to data centers across more than a dozen US states, with concerns about rising electricity bills and environmental impacts.
Democratic state representative Melanie Sachs, who sponsored the bill, criticized Mills' decision, stating that it poses significant potential consequences for ratepayers, the electric grid, the environment, and Maine's shared energy future. The veto highlights the ongoing debate between economic development and environmental concerns in the face of rapid technological advancement.
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