A national taxpayer advocate said a proposed moratorium on large-scale data centers in Maine would have undermined economic growth and technological investment, following Janet Mills’ veto of the measure.
“The proposed data center moratorium, which has fortunately been vetoed, would have slammed the brakes on economic growth and technological investment across Maine,” Ross Marchand, executive director of the Taxpayers Protection Alliance (TPA) told Pine State News. “Halting projects of this scale sends exactly the wrong signal to innovators and employers looking to invest in American communities.”
“Governor Mills frustratingly fails to accept this reality, but by highlighting the importance of the Jay project to jobs and tax revenue, the Governor effectively acknowledges that data centers deliver meaningful, tangible benefits to local communities,” said Marchand. “Instead of attempting to carve out exceptions for favored projects, the Governor and Maine lawmakers should do the right thing and commit to allowing innovation and growth into the state.”
Mills vetoed LD 307 on April 18, rejecting legislation that would have imposed a temporary statewide pause on new high-energy data center projects while the state studied their impacts.
The bill would have paused permitting for data centers using more than 20 megawatts of power until November 2027 while a new coordination council studied impacts on the electric grid, electricity rates and the environment, according to the Maine Legislature. Smaller facilities would have been exempt.
In her veto message, Mills said a temporary pause could be appropriate given concerns about energy use and environmental effects, but rejected the bill because it did not include an exemption for a proposed redevelopment project in Jay.
The Jay project, a proposed $550 million data center at the site of the former Androscoggin Mill, is intended to revive the local economy after the mill’s closure in 2023.
Mills said she would have supported the legislation with a carve-out for the project and announced plans to establish a data center coordination council through executive action. She also approved separate legislation limiting certain tax incentives for data centers.
Lawmakers could attempt to override the veto, which would require a two-thirds vote in both chambers.
TPA is a Washington, D.C.-based nonprofit organization that advocates for lower taxes, limited government spending, and regulatory reform at the federal and state levels.
