Proposed data center inches closer to reality

News Clip2:44NEWS CENTER Maine·Eastport, Washington County, ME·9/1/2026

A proposed underwater AI data center by Deep Green off Eastport, Maine, is advancing in the federal review process but faces significant community opposition. Residents are concerned about environmental impact and changes to the town's maritime character, leading the city council to enact a 180-day moratorium on data center permits. The Federal Energy Regulatory Commission is still considering Deep Green's preliminary permit application.

zoningoppositionenvironmentalannouncementgovernmentlegalelectricitywatermoratorium
Gov: Federal Energy Regulatory Commission, Eastport City Council, City manager Brian Shuth, City attorneys

A proposed underwater artificial intelligence (AI) data center off the coast of Eastport, Maine, by Massachusetts-based developer Deep Green, is moving forward in the federal review process, generating significant community pushback. Residents express concerns about the potential environmental impact on Passamaquoddy Bay and how the project, which relies on tidal energy and seawater for cooling, could alter Eastport's established maritime character, particularly its fishing and lobstering industries. Sue Hendricks, a resident, voiced the desire for a community vote on such development.

In response to the growing apprehension, the Eastport City Council approved a 180-day moratorium, temporarily halting the issuance of new data center permits. City Manager Brian Shuth explained that this moratorium provides the city with crucial time to address zoning questions and gather further community input, ensuring no permits can be issued for at least six months. Deep Green's managing member, Louis Wolfson, stated that the moratorium does not impact the company's current federal permit plans, and the company intends to present transparent, empirically-backed information to the community once its data is complete.

The Federal Energy Regulatory Commission (FERC) recently accepted Deep Green's revised preliminary permit application. However, Shuth clarified that the permit has not yet been granted, and if approved, it would only allow for engineering and environmental studies, not construction. Concerns about the project's heat output and water impact remain, with Shuth suggesting even the developer might not fully know these effects without further study. Residents have until October to file an intervention with FERC before a decision is made on Deep Green's preliminary permit.

Additionally, the city held a public hearing on proposed rules to potentially ban large-scale data centers. A separate proposal requiring voter approval for major developments was deemed unlawful by city attorneys, indicating ongoing efforts to establish local control over such projects in Eastport.