Pause Could Kill Data Center Project – or Not 

Photo: NYC Office of Technology 

By Lee Burnett 

Opinion is divided on how a statewide pause on data center development would impact Sanford’s proposed data center, the state’s largest. 

A legislative committee last week recommended passage of a 19-month pause on data center development to allow the state time to develop regulations. The Energy, Utilities and Technology Committee voted 8-5 along party lines with Democrats supporting the measure. 

Republican Sen. Matt Harrington, who represents Sanford and surrounding communities, asserted without qualification that a pause would “kill that project,” estimated to be a $2 billion investment. Furthermore, he said a pause will “do nothing” to stop data center development in other states. “This bill will kill a massive investment in Maine,” he said. It was Harrington who had first disclosed the existence of Sanford’s data center about a month ago in an attempt to derail a potential moratorium. At the time, he said the project was “well on track to happen.” 

Mayor Becky Brink has described the project as far from imminent. “It’s quite a ways off,” she told a packed audience at a City Council meeting March 3. She said she knows very little about the project herself and advised audience members to withhold comment until the scope of the project is more certain. 

“The data center, it’s kind of a waste of your time,” she said. “It might not even come. The state is probably going to step in and do something anyway, so we just kind of wait on that until it is a possibility.”  

The purpose of the legislation is to create a Data Center Coordination Council to anticipate the raft of potential impacts of data centers and consider whether regulations need revision. Among the considerations are impacts on water resources, electricity rates, and electrical grid capacity. Another question is whether the state’s environmental regulations are sufficient. Other considerations are whether data centers are eligible for tax incentives and whether they would be subject to impact fees and community benefit packages.  

Bill sponsor Melanie Sachs, D-Freeport, described the pause as “targeted, temporary and thoughtful.” She said states such as Virginia and Michigan are now “scrambling” to address unintended consequences of unfettered data center development precipitated by “welcome mat” tax incentives. Sachs has noted that her legislation allows for pre-construction activities such as permitting, marketing, and financing. She specifically asked developers to identify objectionable language that would prevent early state groundwork and got no answer. She said she hopes the legislation will provide certainty about Maine’s investment climate for data center developers.  

The Data Center Coordination Council would be required to deliver a report and recommendations by February 2027. If adopted, the earliest permits could be issued would be November 2027, or 90 days after adjournment of the 133^rd Legislature. 

The co-developer of the Sanford project said he is uncertain about the impact of a pause. 

“Unknown. It’s not going to help. It could be harmful. Would it kill the project? It could,” said Randy Gibbs, whose family has owned the property in south Sanford since the mid 1970s and who has an energy infrastructure development background. 

The impacts to be considered by the council are already in the mix, Gibbs said. “I think these things are all on the table, regardless. We’re going to run the gauntlet, as every other new industry would,” he said. 

Gibbs and his team are seeking to portray their project as significantly different from data centers that have stoked controversy elsewhere over massive water and electricity usage and over noise complaints. 

The data center would be only one component of larger power generation and technology campus. 

Developers have obtained assurances from the Sanford Water District that ample supplies exist to accommodate the pumping of an additional 300,000 gallons a day needed. Furthermore, District Superintendent David Parent said he actually welcomes the additional water usage because it would stabilize rates for other users. Developers have also proposed a hydrogen fuel cell power source that would be “islanded” from the regional electricity grid, thereby limiting its impact on electricity rates. However, natural gas turbines would be needed during an interim period of up to five years. Natural gas is a driver of Maine’s electricity rates, which are already twice the national average. 

As for noise, developers say they are addressing that in two ways. The fuel cell technology is much quieter than natural gas turbines. They acknowledge cooling towers generate noise; however, the towers wouldn’t be operating as often because of Maine’s naturally cool climate. Furthermore, the wooded setting would buffer neighbors. 

“We’re going to keep the forested character. That is naturally going to suppress what noise does come from the site,” said Gibbs. Environmental consultants have determined that up to 2/3 of the 1,050 aces are potentially developable, he said. “We’re not clear-cutting 1,000 acres,” he said. Gibb said a large-scale development is needed to justify the investment of bringing roads, sewers, water, broadband and other infrastructure. 

“The only way all these utilities can be brought to the site is an anchor tenant to offset those considerable costs, which are north of $30 million,” he said. “What kind of industry would support that upfront capital cost? Who knows when such an opportunity would come around again?” 

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