The data center complex would be sited on a 1,060-acre site in south Sanford bisected by the Mousam River
Photo: Google Earth
By Lee Burnett
The data center proposed for 1,060-acre site in south Sanford would be only one component of a campus of interconnected industrial and technical uses that represent more than $2 billion in investment, according to company and city officials.
“It’s wrong to think of us solely as a data center project, as we envision much, much more,” co-developer Randy Gibbs told the Energy, Utilities and Technology Committee of the Maine Legislature on Feb. 19.
The Sanford Woods Industrial and Technical Campus would be powered by a 300-megawatt hydrogen fuel cell power plant that feeds electricity to a 100- to 300-megawatt data center, a 50-acre industrial greenhouse, a cold storage facility and potentially a range of other advance manufacturing, warehouse distribution and research and development businesses, Gibbs said.
“All these industries are symbiotic with one another and benefit from each other’s presence,” he said.
Sanford City Manager Steve Buck has tallied the cumulative investment at about $2.16 billion, which represents an 80 percent increase in the total taxable value of the city. If that were all returned to property taxpayers, it would result in a 60 percent tax reduction, he said.
“For the average $400,000 home in Sanford, that is about $3,000 a year (in) savings,” Buck said. “That is enormous.”
One of the most contentious issues is the degree to which the proposed data center would impact electricity rates in Maine, already twice the national average.
Gibbs and co-developer Walt Bussells say no power from the regional electric grid would be needed because the entire campus would be self-powered.
“We intend to be islanded, physically, operationally and financially,” Bussells said. The hydrogen fuel cell technology would supply electricity at “well-below grid cost,” he said, enabling projects “to compete in the national competition going on.”
The technology would initially be fueled by natural gas and would transition to hydrogen within five years, he said.
Not everyone at last Thursday’s hearing agreed about the project’s impact. The early reliance on natural gas means it would not be as isolated from the grid as Bussells and Gibbs claim, according to Rep. Christopher Kessler, D-South Portland, who pointed out that natural gas is the primary driver of electricity rates today.
The biggest environmental concern raised by data centers is the large volume of water needed to cool servers, storage systems and networking gear. Company representatives say the maximum volume of water needed for the combined campus would be 300,000 gallons a day, which David Parent, superintendent of the Sanford Water District, said could easily be handled. Parent told the committee that the district currently pumps 1.5 million gallons a day, which is a little more than half of the daily draw of 2.7 million 20 years ago, when the district had more industrial users. The extra pumping would help stabilize rates for other customers, he said. Furthermore, Parent said, the district pumps from a deep sand and gravel aquifer that could sustainably supply additional well fields, if needed. Sen. Matthew Harrington, R-York, said he has invited the state geologist to bolster Parent’s assertion.
Developers had been working behind the scenes but were prompted to go public when news broke that Rep. Melanie Sachs, D-Freeport, was proposing a moratorium on data center development in Maine. The moratorium language has since been softened and may have little bearing on this project, as became clear during committee discussion. Sachs announced that moratorium is no longer the operational word. She calls it a temporary limitation, designed to allow time for the state to develop rules for data centers. As proposed, preliminary groundwork could continue, but no permits for construction could be issued before rules are adopted by the end of 2028.
Sachs repeatedly asked company representatives to identify objectionable language that would prevent early-stage groundwork.
“Is there anything that would truly impede the prospecting and the other things you are doing, the marketing work?” she asked.
“Nothing that comes to mind,” said Gibbs. The development timetable provided by Gibbs indicated that marketing, choosing a data center partner, and arranging financing and permitting could take nearly two years. Gibbs said he is “comforted” if the goal of the rules is to create clarity in the regulatory environment.
The clarity sought by Sachs concerns how data centers are taxed, whether impact fees and community benefits packages are required, and how environmental regulations would apply. These are all questions to be addressed by a proposed Artificial Intelligence Data Center Council.
“I do think that before any dirt is moved, the council be allowed to do its work,” Sachs said.
Large Capital Investments in Maine at a Glance
In 2023, the Maine Public Utilities Commission approved contracts with LS Power for a $2.9 billion power line and with Longroad Energy for a $2 billion, 1,000 MW windfarm west of Houlton in Aroostook County. It’s still awaiting approval.
In July 2025, Sappi announced completion of a $500 million expansion of papermaking capacity at its Skowhegan mill.
In January 2026, Avangrid, the parent company of Central Maine Power Co., announced completion of a 145-mile, $1.65 billion power line that will bring 1,200 MW of hydro power from Quebec to Massachusetts.
On Feb. 12,1026, details began emerging of a $2.16 billion combined power plant, data center, industrial greenhouse and cold storage facility in south Sanford proposed by New England Energy.
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