Plans for a large-scale data center at the former Androscoggin Mill in Jay are "on hold" after the company supposed to operate the facility pulled out of the development.
The $550 million project became the focus of a political tussle between Gov. Janet Mills and members of her own Democratic party this spring over whether to temporarily ban large data centers statewide.
In a statement, Jay Town Manager Shiloh LaFreniere said that Sentinel Data Centers, the company that mill owner JGT2 Redevelopment partnered with to operate the proposed data center, notified the owner "of their intent not to move forward at this point."
"JGT2 is pursuing conversations with other interested parties but the data center project is currently on hold; future plans are yet to be determined," LaFreniere said. The town manager was not available for an interview Friday.
The proposed $550 million plan would have redeveloped the former Androscoggin Mill, which ceased production in 2023. Developer Tony McDonald purchased the property and said the data center would bring more than 100 jobs and welcome tax revenue and economic development to Jay and nearby communities. McDonald did not respond to multiple interview requests Friday.
In March, the Jay development became a flashpoint as lawmakers debated enacting an 18-month moratorium on new data centers that use more than 20 megawatts of power.
The temporary ban was intended to give the state time to study data centers and recommend ways to develop them in Maine. The facilities are blamed for driving up electric prices, using unsustainable amounts of water and producing light and air pollution in other parts of the U.S.
McDonald and JGT2 Redevelopment said that the moratorium would cripple their development. At the time he said construction was imminent, with groundbreaking to begin in July.
After lawmakers failed to exempt the Jay project from their moratorium, Gov. Mills vetoed the bill. In her veto message the governor said that she agreed with the need to pause data center development, but that it failed to allow for the Jay development that enjoyed support from its host community and region.
In a statement Friday, Mills' spokesperson Ben Goodman said the governor was "disappointed that the project in Jay, with all the jobs and significant tax benefits it would provide the community, is on hold."
Mills is committed to redeveloping the Androscoggin Mill and her administration will do everything it can to support Jay as it promotes investment and job creation, Goodman added.
After vetoing the bill, Mills established a data center advisory council to examine the facilities and recommend policies to enable responsible development in Maine. The council started meeting in early June and is supposed to deliver its report to lawmakers in early January.
