Data centers are coming for rural America

Maine Governor Janet Mills vetoed a state bill last month that would have enacted an 18-month moratorium on data center permits consuming over 20 megawatts, citing the need for jobs in rural towns. This decision came as a $550 million data center project is planned for a former paper mill in Jay, Maine, a town that lost its largest employer in 2020. Developer Tony McDonald, leading the project after purchasing the mill through JGT2 Redevelopment, is pursuing a partnership with Sentinel Data Centers for what is anticipated to be a neocloud data center. The proposed facility, which the Jay Select Board voted 4-0 in support of, is expected to create 125-150 permanent jobs, according to McDonald and Governor Mills. However, the article argues that data centers often fail to deliver substantial long-term employment, citing economist Michael Hicks's study of Texas counties which found net job creation to be effectively zero. Critics like Maine State Rep. Melanie Sachs, sponsor of the vetoed moratorium bill, expressed concern that the state lacks a framework to properly evaluate data center claims, emphasizing that the focus should be on significant tax revenue rather than potentially overstated job promises. The article also highlights the environmental and infrastructure strain, noting that neocloud data centers require high energy and water for advanced cooling. While a separate state law was passed to exclude data centers from some state tax breaks, local municipalities retain the ability to offer incentives, which some experts like Anthony Elmo of Good Jobs First warn can disadvantage rural towns in negotiations.