Data center moratorium could end Jay paper mill project, House vote anticipated soon

Maine lawmakers are currently debating LD 307, a proposed bill that would implement a temporary moratorium on new large-scale data center developments across the state. The legislation, which could face a House vote as early as this week, seeks to establish a review council to study and recommend regulations for the rapidly growing data center industry. Supporters argue the pause is crucial for establishing proper state oversight, while critics express concern that it could impede ongoing projects and cause Maine to miss out on economic opportunities. Tony McDonald, a partner with Boulos Company, is among those concerned, as a data center project planned for the former paper mill in Jay, Maine, on his property, faces potential cancellation if the moratorium is enacted. McDonald stated that $10-12 million has already been invested in the mill site and contended that the proposed data center would not exceed the previous paper mill's electricity or water consumption, thereby minimizing additional strain on local resources. The project is currently slated to break ground this summer, and McDonald emphasized that it cannot endure delays. Two versions of LD 307 are under consideration, one from Democratic Rep. Melanie Sachs of Freeport and another from Republican Sen. Matt Harrington of York. Both versions propose a temporary halt for state evaluation, but Harrington’s version includes a "workaround" for qualifying data centers that can demonstrate no negative impact on ratepayers or water supply, allowing them to proceed. This exception is supported by Harrington, who believes such developments, like one discussed in Sanford, could reduce property taxes. Conversely, Rep. Sachs opposes exemptions, advocating for all projects to be subject to the same review process to protect Maine's environment and ratepayers. Her version of the bill includes only one exception for projects under 20 megawatts, equating it to grid-scale solar in terms of grid impact. The Jay Select Board recently voted to send a letter to Governor Janet Mills, seeking support for McDonald's project and requesting an exemption from the proposed moratorium. The bill was tabled in the House but may be revisited for a vote shortly.