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Maine’s governor vetoes data center moratorium

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Why This Matters

The veto of Maine's proposed data center moratorium highlights the ongoing debate over balancing economic growth with environmental and infrastructural concerns in the tech industry. While some states consider restrictions to mitigate environmental impacts, Maine's decision underscores the importance of nuanced policies that support responsible development. This decision could influence future legislation and industry practices across the U.S.

Key Takeaways

In Brief

Maine Governor Janet Mills has vetoed a bill that would have temporarily brought permits for new data centers to a halt.

If it had become law, L.D. 307 would have imposed the country’s first statewide moratorium on new data centers — lasting, in this case, until November 1, 2027. The bill also called for the creation of a 13-person council to study and make recommendations on data center construction.

With public opposition to data centers rising, other states including New York have considered similar moratoriums.

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” and that she “would have signed this bill” if it had included an exemption for a data center project in the Town of Jay.

That project, Mills said, “enjoys strong local support from its host community and region.”

Melanie Sachs, a Democratic state representative who sponsored the bill, said Mills’ veto “poses significant potential consequences for all ratepayers, our electric grid, our environment, and our shared energy future.”