Another planned data center in Maine could be canceled due to upcoming legislation that would impose a moratorium on new developments in the state, one of the project developers has claimed.

The data center is set to be built at the site of a former paper mill belonging to International Paper in Jay, a town in Maine’s Franklin County.

Developer JGT2 Redevelopment has apparently agreed a deal with Sentinel Data Centers that would see the company occupy one million sq ft (92,903 sqm) of data center space in the building across two floors.

However, the project may now be under threat due to the proposed bill, sponsored by Representative Melanie Sachs, which includes a two-year moratorium on facilities above 20MW in the state while the impacts of data centers are studied and more stringent controls are put in place.

Speaking to Bangor Daily News, Tony McDonald, who works for one of the project partners - Boulos Co. real estate - said the “moratorium would be disastrous for us.” He added: “I’m shellshocked at what’s happening now.”

McDonald said that the data center would not put undue pressure on the power grid, a common concern among opponents of data centers, because the site already has a gas turbine to provide power, and added that the developer intends to replace this with 150MW of solar energy, though it is not clear if he is referring to direct power generation (unlikely, given Maine’s climate) or a Power Purchase Agreement.

Work on the project is due to start in July, but may be canceled if the bill continues its progress, McDonald said. He added that the data center had not faced opposition from the local community, and that it would create 800-1,000 construction roles, as well as 125 permanent jobs.

The paper mill, formerly one of Maine’s major employers, shut down in 2023.

Moratoriums are being proposed at a state level across the US as residents begin to rally against the massive data center build-out planned to power the AI revolution.

Though none have yet been imposed, New York State, Virginia, Vermont, Oklahoma, Maryland, Georgia, Pennsylvania, and Michigan are all considering various types of restrictions.

As reported by DCD, a potential moratorium has been cited as a factor that may stop another data center project in Maine, a campus of 100MW-300MW being proposed in Sanford.

Established in 2001, Sentinel Data Centers is a firm that builds data centers for other companies, and its website does not currently list any projects in Maine.