Maine Town Fights to Bring A.I. Data Center to Revitalized Paper Mill Site

Maine nearly became the first state to ban data centers earlier this year, but in Jay, supporters of an AI data center project rallied against the measure. The push comes as a shuttered paper mill, once the town’s economic heart, faces transformation into a tech hub. “That’s our opportunity to become part of the 21st century,” said a local advocate, according to a report.

The paper mill, which employed around 800 people in the 1990s, closed after a 2005 explosion that cost 300 jobs and millions in tax revenue. Former State Senator Tom Saviello, who helped clean up the plant’s pollution, called the site “perfect” for an AI data center due to existing infrastructure. Real estate developer Tony MacDonald, who bought the mill in 2023, projected 100-150 jobs and $6 million annually in tax revenue for Jay, a town of 4,600 residents.

State lawmakers, however, raised concerns about resource strain. Democratic Representative Melanie Sachs argued that data centers “outrun policy,” citing risks like water system overuse and environmental degradation. Her proposed ban passed the legislature but was vetoed by Governor Janet Mills, who prioritized Jay’s potential jobs over broader protections for 1.4 million Mainers.

Despite initial momentum, the project faced setbacks. A key server supplier withdrew, leaving MacDonald to seek new partners. The mill’s parking lot remains empty, and the town awaits its economic revival.

Why did Maine consider banning data centers?

Maine lawmakers sought to address concerns about data centers’ high water and electricity use, as well as potential strain on local infrastructure. Democratic Representative Melanie Sachs argued that unchecked development could harm communities, prompting a legislative effort to pause new projects.

What are the economic hopes for Jay?

Supporters of the AI data center project in Jay cite potential for 100-150 permanent jobs and $6 million in annual tax revenue. Developer Tony MacDonald emphasized the site’s existing infrastructure, including water and power systems, as a key advantage for the project.

What happens next for the project?

With a key server supplier withdrawing, MacDonald is seeking new partners. The project’s future remains uncertain, as the town waits for a lifeline while state lawmakers continue to debate the risks and benefits of data center expansion.

What factors might influence the next steps in Jay’s data center plans?