Developer of data center for Jay mill seeks exemption to proposed legislation

JGT2 Redevelopment, a company led by partner Tony McDonald, is urging the Jay Select Board to support an exemption from proposed state legislation, LD 307, which would impose a temporary moratorium on new data center developments in Maine. On March 23, McDonald addressed the board, highlighting that their co-location data center project at the former Androscoggin Mill site would create jobs and tax revenue for the town of Jay without burdening local resources. The Select Board responded by voting to have Town Manager Shiloh LaFreniere collaborate with JGT2 Redevelopment to draft a letter of support to Governor Janet Mills, advocating for the project's exemption. McDonald stressed that their proposed facility, with an initial demand of 82 megawatts and a closed-loop cooling system requiring significantly less water than the former paper mill, is distinct from the large "hyperscale" data centers often targeted by moratoriums. He also noted that the site's existing electrical infrastructure would prevent strain on the regional power grid. LD 307, sponsored by Rep. Melanie Sachs, D-Freeport, aims to halt permits for data centers with loads of 20 megawatts or more until October 2027, allowing a new Data Center Coordination Council to study their impacts. McDonald warned that this delay would be an "existential threat" to the $550 million investment, which promises 800-1,000 construction jobs and 125-150 permanent positions. Local resident John Benedetto, who proposed an economic development initiative, echoed concerns that a blanket moratorium could unfairly block beneficial smaller projects in rural communities struggling with economic recovery.