Opinion: Data center moratorium would stop Jay mill redevelopment

Tony McDonald, a partner in JGT2 Redevelopment and owner of the Jay Mill, highlighted the company's plans to redevelop the shuttered Pixelle Paper Mill in Jay, Maine, into a $550 million data center. Construction is slated to begin in July, with the project expected to create several hundred construction jobs and 125-150 permanent high-paying jobs, generating substantial tax revenue for both the Town of Jay and the state of Maine. McDonald emphasized that their data center project is distinct from the "hyperscaler" mega-projects that typically raise concerns about grid capacity, electricity rates, and water supplies. He stated that their project would operate within the existing grid infrastructure without requiring ratepayer-funded upgrades, use less than 1% of the water previously consumed by the paper plant, and utilize renewable energy sources, including existing hydroelectric facilities and a new 150 MW solar facility. The company has invested millions in private capital and has not requested public financial support or changes to zoning or rules. The project's viability is now threatened by LD 307, a bill proposed in the state Legislature that would impose a moratorium on new data centers in Maine. This legislation would also establish the "Maine Data Center Coordination Council" to study data center impacts. While JGT2 Redevelopment is not entirely opposed to such a council or a moratorium on large hyperscaler projects, they are requesting an exemption for their Jay project, arguing it lacks the negative attributes associated with larger developments. McDonald asserted that without this exemption, the redevelopment of the Jay mill would cease, representing a significant loss for the community and the state.