Maine Governor Vetoes Bill That Would Have Imposed First U.S. Data Center Moratorium

Maine Governor Janet Mills has vetoed L.D. 307, a bill that would have temporarily halted permits for new data center construction until November 1, 2027. Had it passed, it would have been the first statewide moratorium on data center construction in the United States.

Bill Provisions

L.D. 307 would not only pause new data center construction but also establish a 13-member council to study and make recommendations on data center development. With public opposition to data centers growing, other states including New York have considered similar moratoriums.

Reasons for Veto

In a letter to the state legislature, Mills — a Democrat currently running for the U.S. Senate — said that pausing new data centers would be “appropriate given the impacts of massive data centers in other states on the environment and on electricity rates.” However, she indicated she “would have signed this bill” if it had included an exemption for a data center project in the Town of Jay.

Mills noted that the Jay project “enjoys strong local support from its host community and region” and should not be subject to a blanket ban.

Reactions

Melanie Sachs, the Democratic state representative who sponsored the bill, strongly criticized the veto. She stated that Mills’ decision “poses significant potential consequences for all ratepayers, our electric grid, our environment, and our shared energy future.”

The incident highlights the dilemma U.S. states face in responding to the data center construction boom driven by AI and cloud computing — balancing industrial demand with environmental protection and energy supply.

Source: TechCrunch