The City of Lewiston could decide to approve a proposal to build an A.I. data center at the historic Bates Mill next week. City officials are saying the site is ideal for tech development, but similar centers have been steeped in controversy over environmental and transparency concerns.
The proposed project would be built in two phases and take up the Bates Mill No. 3 building's first two floors, or roughly 85,000 square feet.
Bill Johnson, the building’s owner, partnered with MillCompute LLC a "team that includes local leadership and experts from across the country in data center construction, operation, and finance," according to a memo sent to city councilors.
Data centers, including those for cryptocurrency and A.I are expected to spike in demand as more computing power is required for services like ChatGPT.
City Administrator Bryan Kaenrath said the project could bring in over $700,000 in annual tax revenue and create 20-30 jobs. The actual tax revenue amount will depend on if the city grants a Tax Increment Financing (TIF) and Credit Enhancement agreement. Developers proposed a 20-year agreement “to support extraordinary energy costs."
"This is taking a very large piece of square footage in our downtown and going from vacant to investment, from vacant to tax revenue, from vacant to jobs," he said. "It's a huge win for the city."
Data centers require lots of electricity and water to power and cool servers. As a result, utility rate hikes have been reported across the country in areas with new centers.
An FAQ page on MillCompute's website says the company will not use the local Central Maine Power grid but quote, "activate dormant available supply" from CMP. It will also use diesel generators for backup power.
Also in the proposal, are plans to build a 20-24 megawatt natural gas co-generation system in the “Boiler House” of Bates Mill to "supply below-market electricity to support data center needs."
Kaenrath differed to the developer MillCompute LLC for questions about energy usage. A spokesperson for the company did not immediately return a request for comment.
City councilors will decide whether or not to approve a Joint Development Agreement, "which establishes the framework for the public private partnership," in its next regular meeting scheduled for 7 p.m. on Tuesday Dec. 16.
Read the memo sent to city councilors.
