Governor Mills Vetoes Data Center Moratorium Bill, Citing Jay Project
Maine Governor Janet Mills vetoed L.D. 307, An Act to Establish the Maine Data Center Coordination Council and Place a Temporary Limitation on Certain Data Centers, on April 24, 2026. Governor Mills’ office announced the decision, explaining that even as she supports a temporary moratorium on data center projects, the bill’s final version excluded a specific project underway in Jay, Maine.
Concerns Over Data Center Impact
Governor Mills stated that a moratorium is “appropriate given the impacts of massive data centers in other states on the environment and on electricity rates.” However, she expressed concern that the bill, as written, would hinder a $550 million data center redevelopment project in Jay. This project aims to revitalize the site of the former Androscoggin Mill.
The Androscoggin Mill Redevelopment
The closure of the Androscoggin Mill in 2023, following a boiler explosion in 2020 and the departure of Pixelle Specialty Solutions, resulted in the loss of hundreds of jobs and significantly impacted the Town of Jay’s tax base, accounting for an estimated 22 percent. According to the Governor’s office, the Town of Jay spent two years securing the data center project to bring investment and jobs back to the brownfield site.
Local Support for the Jay Project
The project has garnered support from local officials, including the Town of Jay, Franklin County Commissioners and the regional Chamber of Commerce. The Maine Monitor reported that these entities have written to Governor Mills in support of the redevelopment.
Project Details and Infrastructure
The proposed data center in Jay is designed to be housed within the existing structures of the former paper mill, minimizing its footprint. As noted in an opinion piece in the Portland Press Herald, the facility is intended to serve multiple small-scale users rather than a single large technology company. Engineers and planners involved in the project anticipate that it will utilize the site’s existing electrical infrastructure and on-site generation capabilities, limiting its impact on the wider power grid.
Legislative Response
The Maine Legislature will now consider Governor Mills’ veto. A vote to sustain the veto would allow the Jay project to proceed as planned. Maine Public reported that officials in Franklin and Kennebec counties had urged the Governor to veto the bill, citing the potential economic benefits of the Jay development.