Governor Janet Mills of Maine has vetoed a bill that would have placed a one-year moratorium on permitting for large data centers, citing the legislation’s failure to exempt a specific $550 million redevelopment project planned for the former Androscoggin Mill site in the Town of Jay.
The vetoed legislation, L.D. 307, An Act to Establish the Maine Data Center Coordination Council and Place a Temporary Limitation on Certain Data Centers, had been passed by the Maine Legislature and would have imposed a temporary ban on municipal and state permitting for data centers with an electricity load of 20 megawatts or more until November 1, 2027. Governor Mills announced her decision on Friday, April 24, 2026, informing the legislature that while she supports the goals of studying data center impacts on ratepayers, grid reliability, and the environment, the bill as amended did not include an exception for the Jay project.
The governor emphasized that a moratorium is appropriate given the impacts observed in other states where large data centers have strained local electricity supplies and contributed to rising rates. Though, she stated that the final version of the bill failed to allow for the specific project in Jay, which has strong local support and is intended to revitalize a brownfield site left vacant after the 2023 closure of the Androscoggin Mill.
“The 2023 closure of the Androscoggin Mill dealt a devastating blow to the Town of Jay and its surrounding area,” Governor Mills said in her veto message. “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.”
L.D. 307 similarly aimed to establish a 13-member Maine Data Center Coordination Council tasked with studying data center siting considerations and preparing a report with findings and recommendations by February 1, 2027. The council’s purpose, as outlined in the bill, was to protect ratepayers, maintain electric grid reliability, minimize environmental impacts, and promote responsible and appropriately sited economic development. Governor Mills said she supports these goals and intends to establish a similar commission by executive order to pursue this perform.
The veto means that Maine will not develop into the first state in the nation to enact a statewide moratorium on new large data center permits, a distinction that had been anticipated following the Legislature’s passage of the bill. The decision highlights the tension between broader concerns about energy consumption and environmental impact and localized economic development efforts, particularly in communities seeking to replace lost industrial jobs.
The Town of Jay’s proposed data center project is positioned as a redevelopment of the former paper mill property, which had been a major employer in the region for decades. Local officials and community leaders have voiced support for the project as a path to economic recovery, arguing that it would bring significant investment and create high-skilled technology jobs in an area that has struggled since the mill’s closure.
Environmental and consumer advocacy groups had backed the moratorium bill, citing concerns that large data centers can consume vast amounts of electricity—sometimes equivalent to the usage of tens of thousands of households—and potentially drive up energy costs for residents. They also raised questions about water usage for cooling systems and the potential strain on rural electrical infrastructure.
In her veto message, Governor Mills acknowledged the validity of these concerns but argued that a blanket moratorium that overlooks specific, locally supported projects is not the right approach. She reiterated her intention to move forward with a coordinated study of data center impacts through executive action, separate from the legislative process.
The legislature has the opportunity to override the veto with a two-thirds vote in both the House and Senate. As of the announcement, no immediate plans for an override vote had been publicly disclosed by legislative leaders.
Governor Mills’ action reflects an ongoing national debate over how to balance the rapid expansion of data center infrastructure—driven by growth in cloud computing, artificial intelligence, and digital services—with local concerns about sustainability, affordability, and community character. Similar debates have unfolded in states like Virginia, Georgia, and Arizona, where data center concentration has prompted calls for greater oversight and planning.
For updates on any potential legislative override attempt or future executive actions related to data center policy in Maine, the public can refer to the official website of the Maine Legislature and the Governor’s office, where veto messages and official statements are routinely published.
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