Mills pushes for Jay exemption in data center bill

Governor Janet Mills is strongly advocating for a specific exemption for the town of Jay from a proposed 18-month statewide moratorium on data center development in Maine. Speaking in Augusta, Mills reiterated her desire for a "carveout for Jay," emphasizing the town's need for jobs and economic revitalization following the closure of the Pixelle paper mill, while also acknowledging the need for appropriate guardrails on water and electricity resources. The legislation, sponsored by Rep. Melanie Sachs (D-Freeport), seeks to temporarily halt data center construction to allow a task force to study the risks and benefits, citing concerns over grid, environmental, and community impacts observed in other states. Data centers nationally have faced criticism for high water and electricity consumption, with a Lawrence Berkeley National Laboratory report predicting a significant increase in U.S. electricity use by 2028. The Jay Board of Selectpersons formally urged Governor Mills to veto the bill or secure the exemption, highlighting the profound negative impact of the paper mill closure on local employment and tax revenues. They described the proposed data center project for Jay as "small scale," leveraging existing electrical infrastructure, using minimal water compared to the mill, and promising 800-1,000 construction jobs and 125-150 permanent high-paying jobs, alongside the demolition of a gas-fired turbine plant for renewable energy. The article also notes other data center discussions in Maine, including the Lewiston City Council's rejection of an AI data center in December due to public opposition, and a Texas company's interest in Sanford, which prompted State Sen. Matt Harrington (R-Sanford) to propose an alternative bill allowing some projects under state and local guidelines. Governor Mills supports a balanced approach, recognizing the AI boom and technology needs while prioritizing environmental protection and stable electricity rates.