Jay, Maine Data Center Project on Hold After Client Withdrawal; Governor Vetoed State Moratorium
Jay, Maine, strongly supported a data center project on a former paper mill site, leading Governor Janet Mills to veto a statewide moratorium that would have blocked it. However, the project was recently put on indefinite hold after the data center firm, Sentinel, backed out. The town is now seeking a new client for the development.
The town of Jay, Maine, contrary to widespread public sentiment against data center construction, actively sought to host a new data center on the site of a former paper mill. This local support played a critical role when Governor Janet Mills vetoed LD 307, a bill passed by the Maine legislature in April, which would have imposed a statewide moratorium on data centers using 20 megawatts or more. Governor Mills cited the importance of allowing the specific project in Jay to proceed as her reason for the veto, despite acknowledging the appropriateness of a moratorium in principle.
The proposed data center was to be developed by JGT2, led by Tony McDonald, on a 1,000-acre property that housed the defunct Androscoggin paper mill. The site offers significant infrastructure, including direct rail access, gas, a wastewater treatment plant, and a 150-megawatt electrical interconnect supplemented by hydroelectric power. McDonald, who initially planned a wood-product facility, secretly pivoted to a data center deal with Sentinel, only informing the Jay Select Board in late March. Despite this lack of transparency, the board unanimously voted to support the project and lobby the governor, with minimal local opposition emerging in the town.
Local residents and officials, including Trevor Doiron and former mill environmental manager Tom Saviello, saw the data center as a crucial economic opportunity to revitalize the community, which has suffered since the mill's explosion in 2020. They highlighted the potential for new jobs, increased property tax revenue for the town's $7.2 million budget, and the site's suitability due to its existing power and water infrastructure, drawing parallels to the mill's previous industrial impact.
However, despite the state's legislative efforts and the governor's intervention, the data center project was put on indefinite hold on June 11 after McDonald's client, Sentinel, withdrew. McDonald is now attempting to secure a new firm for the development, though optimism among residents remains low, viewing it as another in a series of economic hopes that ultimately did not materialize.