The One Town That Wants a Data Center - The Atlantic

Opposition to data centers may be the singular unifying issue in American politics. Seventy percent of Americans are against data-center construction in their communities. They worry about the environmental dracularity of these facilities, the electrical costs they may impose, and the imperiousness with which tech companies target struggling communities while drastically altering the landscape. Bernie Sanders and Alexandria Ocasio-Cortez have spoken out against data centers; so have Steve Bannon and the right-wing podcaster Matt Walsh.<br>About 75 data-center projects were blocked or delayed in the first three months of this year—roughly the same as were blocked or delayed in all of last year. Still, this is a fraction of the more than 1,500 projects in development. Those who seek to stop the spread have recently turned to statewide moratoriums. Fifteen states have introduced moratorium bills, but only two of those bills have made it through the legislature. Last month, New York became the first to ban the construction of “hyperscale” data centers (ones that use 50 megawatts of power or more). Maine was supposed to have beaten it. In April, the state passed LD 307, which would have banned new centers using 20 megawatts or more. The bill went to the office of Governor Janet Mills to be signed into law. And she vetoed it.<br>Mills took no issue with the thrust of the bill, writing “a moratorium is appropriate.” She vetoed it for one reason only: It failed “to allow for a specific project in the Town of Jay.”<br>Jay, Maine (population: 4,620; motto: “Proud of our past and working for our future!”), wants a data center. It had one in the works, and town officials lobbied the governor to preserve it. Mills listened. “We must consider the perspective of the Town of Jay,” she wrote.<br>In May, I drove to Maine to consider the perspective of the Town of Jay. I wanted to understand why this town had fought for the very thing that so many others dread. What I found was a reminder that politics is local. Jay’s embrace of the data center had less to do with the power of rapacious tech companies or the future of AI than it did with the failure of a series of welds that sealed a 166-foot-tall pressure cooker at a half-century-old paper mill.<br>There are two Maines. The first Maine is right there on the license plate: vacationland. Lighthouses, lobster bibs, the jagged coast, anywhere with a big, beautiful lake or a big, beautiful ski mountain. The other Maine—Jay’s Maine—is Appalachia. When I asked ChatGPT what I should see in Jay, it suggested (gently) that I should visit somewhere else. Jay is a 90-minute drive from the coast. It has no lighthouse and no giant lake. The school is the town’s largest employer. A surprising number of people ride motorized scooters—they can no longer afford cars. What Jay does have is space.<br>In 2023, a company called JGT2 bought 1,000 acres just across the Androscoggin River from Jay. To inexpert eyes, the property—the site of the former Androscoggin paper mill—doesn’t look like much: a few rusted and stained industrial buildings sprouting weeds in the shadow of an immense landfill. But to Tony McDonald, one of the developers who leads JGT2, the site looks like money. It has direct rail access, gas, a 35-million-gallon-a-day wastewater-treatment plant, and, crucially, power: a 150-megawatt electrical interconnect, plus access to 25 megawatts of hydroelectric power.<br>McDonald’s original idea had been to turn the place into a wood-product manufacturing facility. Mills traveled to Jay to announce the project, which was expected to create about 125 jobs. And yet over the next two years, the factory plan quietly died—throttled by the Trump administration’s tariffs on specialized equipment, steel, and aluminum.<br>Julia Kokernak for The Atlantic<br>A mural at the former office of the Western Maine Labor Council.

Jay has minimal zoning laws; McDonald didn’t need to ask anyone’s permission for what he planned to do with the land. So few in the town knew that his focus had switched from wood to data until one freezing night in late March, when he showed up to see the Jay Select Board—the five-member panel that sets town policy. News of the moratorium bill had broken, and McDonald needed the town’s help to preserve his project in Jay. He apologized that this was the first the board was hearing about his deal with the data-center firm Sentinel: “It never occurred to me to discuss it with anybody,” he said, “so to any of you that got blindsided by that, really, I’m sorry. That’s on me.” But without their help, he told the board, the bill “will kill this project. Dead, dead, dead,” before adding, “Dead. Never coming back.”<br>Secrecy around such projects is not unusual, even in places that require town approval. In a recent report, NBC analyzed more than 30 data-center proposals from 14 states and found “in a majority of cases, local officials signed NDAs and worked with...