International Paper in Jay May Still Become an AI Data Center

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A plan to turn the former International Paper mill in Jay into a massive AI data center is moving forward again, just five months after the project was put on hold.

Developer Tony McDonald, through JGT2 Redevelopment, filed permit applications Monday with the Maine Department of Environmental Protection. The proposal would reuse some of the mill’s existing buildings for computer equipment, add heating and cooling systems, and install two diesel generators for emergency power.

McDonald is again looking to work with Sentinel Data Centers, although an agreement has not been finalized. Jay Town Manager Shiloh LaFreniere says a public meeting is tentatively planned for Dec. 10 to discuss the project’s potential impact on local water supplies and the electrical grid, according to a story at the Bangor Daily News.

The original proposal, announced in March, called for a $550 million data center covering about 1 million square feet. The project stalled in June after Sentinel reportedly decided not to move forward. The mill, which once employed more than 1,000 people, closed in 2023.

The renewed effort comes as opposition to data centers grows across Maine. Voters in at least eight communities approved temporary bans in the Nov. 3 election, and Gov.-elect Hannah Pingree has said she would sign a statewide ban on new facilities. Jay, however, does not have a local ban.

Concerns surrounding data centers include their heavy electricity and water demands, along with potential light and air pollution. Environmental groups are also preparing legislation to address the industry during the upcoming legislative session.

Residents can request a public hearing on the Jay project by submitting a written request to the DEP within 20 days after the applications are accepted for processing. Written comments will also be accepted throughout the review process.A plan to turn the former International Paper mill in Jay into a massive AI data center is moving forward again, just five months after the project was put on hold.

Developer Tony McDonald, through JGT2 Redevelopment, filed permit applications Monday with the Maine Department of Environmental Protection. The proposal would reuse some of the mill’s existing buildings for computer equipment, add heating and cooling systems, and install two diesel generators for emergency power.

McDonald is again looking to work with Sentinel Data Centers, although an agreement has not been finalized. Jay Town Manager Shiloh LaFreniere says a public meeting is tentatively planned for Dec. 10 to discuss the project’s potential impact on local water supplies and the electrical grid.

The original proposal, announced in March, called for a $550 million data center covering about 1 million square feet. The project stalled in June after Sentinel reportedly decided not to move forward. The mill, which once employed more than 1,000 people, closed in 2023.

The renewed effort comes as opposition to data centers grows across Maine. Voters in at least eight communities approved temporary bans in the Nov. 3 election, and Gov.-elect Hannah Pingree has said she would sign a statewide ban on new facilities. Jay, however, does not have a local ban.

Concerns surrounding data centers include their heavy electricity and water demands, along with potential light and air pollution. Environmental groups are also preparing legislation to address the industry during the upcoming legislative session.

Residents can request a public hearing on the Jay project by submitting a written request to the DEP within 20 days after the applications are accepted for processing. Written comments will also be accepted throughout the review process.

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