Maine Governor Vetoes 18-Month Data Center Moratorium for $550 Million Jay Project
Updated
Updated · The Verge · May 13
Maine Governor Vetoes 18-Month Data Center Moratorium for $550 Million Jay Project
7 articles · Updated · The Verge · May 13
Janet Mills blocked a first-in-the-nation 18-month pause on permits for data centers using more than 20 megawatts, saying a proposed $550 million facility at Jay’s former paper mill could bring 125 to 150 permanent jobs.
The veto keeps alive redevelopment of the 1.4 million-square-foot mill site, where the largest employer vanished after a 2020 digester explosion and permanent closure.
Lawmakers had sought time to study effects on local economies, the grid and the environment; sponsor Melanie Sachs said towns still lack a framework to test developers’ claims and noted Jay backed the plan 4-0 in March.
Research cited in the report undercuts the jobs case: a Ball State study of 254 Texas counties found data center openings produced effectively zero net long-term employment, with neocloud facilities often needing only 30 to 50 full-time staff.
The bigger payoff may be tax revenue, but only if Jay avoids generous local incentives; Maine already excluded data centers from some state business tax breaks while leaving municipal deals on the table.
Are data centers a false hope for rural towns, trading precious energy and water for a handful of jobs?
As AI strains the US power grid, is Maine sacrificing its energy security for a single tech project?
Maine’s Data Center Moratorium Veto: Economic Opportunity vs. Energy and Environmental Risks in the Jay Project Debate
Overview
In April 2026, Maine Governor Janet Mills vetoed a bill that would have paused new large data center projects, despite acknowledging the environmental and electricity cost concerns seen in other states. The veto was mainly because the bill did not exempt a major data center project in Jay, which has strong local support and promises significant economic benefits for the region. This decision sparked strong reactions from lawmakers who worry about the impact on Maine’s energy grid and environment. The debate highlights the challenge of balancing economic opportunities with the need for careful regulation as Maine faces high electricity prices and growing data center demands.