Maine Town Seeks Revival Through AI Data Center Amid Statewide Debate

Residents of Jay, Maine, are rallying behind a proposed AI data center at a shuttered paper mill, despite state lawmakers’ concerns over environmental and economic risks, according to local officials and developers.

What sparked the debate in Jay, Maine?

The town of Jay, home to 4,600 people, is betting on an AI data center to revive its economy after the closure of a historic paper mill. The facility, which once employed 800 people, shut down following a 2010 explosion that cost 300 jobs and $6 million in annual tax revenue, according to former mill manager Tom Saviello.

“This is our chance to rise from the ashes again,” Saviello said, referencing the mill’s 1990s pollution cleanup. Real estate developer Tony MacDonald, who purchased the site in 2023, plans to convert the 150-acre complex into a data center, promising 100–150 permanent jobs and $6 million in annual tax revenue, per a statement from his firm.

How do state lawmakers view the data center project?

Maine’s Democratic State Representative Melanie Sachs, who sponsored a 2023 bill to pause new data center permits, argues the projects strain utilities and water systems. “Communities pay the price when development outpaces policy,” she said in a press release. The bill, which passed the legislature, was vetoed by Governor Janet Mills, who cited job concerns for Jay.

“It’s hard to justify blocking protections for 1.4 million Mainers for 100 jobs in one town,” Mills stated in her veto message. However, the project faces new hurdles: the data center’s server supplier pulled out in 2024, forcing MacDonald to seek new partners, as reported by Maine Public.

Why is the data center controversial?

Opponents, including environmental groups, highlight the energy and water demands of data centers. A 2023 study by the U.S. Environmental Protection Agency found data centers consumed 80 billion kilowatt-hours annually, equivalent to the electricity use of 7 million homes. Maine’s Department of Environmental Protection has also raised concerns about the project’s impact on local water resources.

Supporters counter that the mill’s existing infrastructure reduces risks. “We’ve already cleaned up the pollution,” Saviello said. “This project could bring stability to a town that’s been struggling for decades.”

What happens next for Jay’s data center plan?

MacDonald has 18 months to secure a new server provider, according to a Wabanomi Magazine report. Meanwhile, state lawmakers are drafting legislation to regulate data center permits, with a focus on ensuring communities see tangible benefits. “The goal is to balance innovation with accountability,” said Maine.gov spokesperson Sarah Thompson.

For now, the mill’s parking lot remains empty, a symbol of both hope and uncertainty for a town waiting for a lifeline.