How a Data Center Derailed $240,000 for Affordable Housing in Rural Maine

In Wiscasset, Maine, a community in rural Lincoln County, a proposed $5 billion data center project became the center of a contentious debate over land use, energy, and local governance. The development on a 300-acre parcel along the Back River overshadowed existing plans for much-needed affordable housing, eventually resulting in the town losing $240,000 in federal American Rescue Plan Act (ARPA) funding that was intended for housing initiatives. Town economic development director Aaron Chrostowsky engaged with an unnamed private company regarding the data center as early as November 2024, two days after Wiscasset secured the ARPA funding for housing. Despite being cautioned by a Lincoln County Regional Planning Commission staffer in February 2025 about misusing federal funds for data center feasibility, Chrostowsky proceeded, later signing a nondisclosure agreement with the developer in August 2025. This process unfolded without public knowledge, leading to significant community uproar when plans became public in September 2025. Lincoln County, through Administrator Carrie Kipfer and its commissioners, expressed growing concerns that Wiscasset's exploration of a 200-acre data center was incompatible with the county's housing priorities and federal grant requirements. By May 2025, the county officially rescinded the $240,000 ARPA allocation, citing a lack of confidence that the funds would be used for affordable housing. The funds were subsequently reallocated to neighboring communities for their housing and infrastructure projects. Community groups like Protect Wiscasset and RePower Wiscasset formed to oppose the data center, raising issues about transparency, environmental impacts, and the extensive electricity and water usage. While the data center project stalled and the Old Ferry Road property remains undeveloped, the incident has damaged public trust in the town government. Furthermore, a state-level bill proposing an 18-month moratorium on data centers above 20 megawatts was vetoed by Governor Janet Mills in April 2026.