Plan for $550M data center in Jay on hold, official says
A planned $550 million data center project in Jay, Maine, intended for the former Androscoggin Mill, has been put on hold after Sentinel Data Centers indicated it would not move forward. This follows Governor Janet Mills' veto of a statewide data center moratorium bill, which she opposed due to concerns it would block the Jay project, drawing criticism from environmental groups.
The $550 million data center project, slated for the former Androscoggin Mill in Jay, Maine, is now on hold. Town Manager Shiloh LaFreniere announced that Sentinel Data Centers, which was to partner with mill owner JGT2 Redevelopment, has decided not to proceed with the plan. JGT2 Redevelopment, led by Tony McDonald, is actively seeking other interested parties for the site, with future plans still uncertain.
This development comes after Governor Janet Mills vetoed a bill that would have imposed a temporary statewide moratorium on new data center permitting. Governor Mills had argued that the bill needed an exemption for the Jay project, which she championed as a significant economic opportunity promising jobs and tax revenue without straining local resources.
Environmental groups, including Maureen Drouin, executive director of Maine Conservation Voters, heavily criticized the governor's veto. They voiced concerns that the decision left Maine vulnerable to data center projects that could deplete resources, increase electric bills, and cause pollution. State Representative Melanie Sachs, the moratorium bill's sponsor, highlighted that developers and the Mills administration failed to provide requested evidence regarding the project's promised jobs and tax revenue, leaving Maine communities without a regulatory framework.
Governor Mills' spokesman, Ben Goodman, clarified that the governor supports a temporary moratorium if the Jay project had been exempted. Mills has since established the Maine Data Center Advisory Council to help balance the benefits of data centers with potential energy cost increases and environmental impacts. Additionally, the governor signed a law disqualifying data center projects from the state’s business equipment tax exemption and the Dirigo business incentive program, further restricting financial incentives for such developments.