The City of Lewiston is preparing to vote next week on whether to approve an artificial intelligence data center at the historic Bates Mill, a proposal city officials are pitching as an economic win even as similar projects nationwide have drawn scrutiny over energy use and transparency.
The proposed facility would be developed in two phases and occupy the first two floors of Bates Mill No. 3, totaling approximately 85,000 square feet of downtown space that has long sat vacant.
Building owner Bill Johnson has partnered with MillCompute LLC, which described itself in a memo to city councilors as a team made up of local leadership and national experts in data center construction, operations, and finance.
Data centers tied to cryptocurrency and artificial intelligence, including platforms such as ChatGPT, are expected to surge as demand for computing power continues to grow.
City Administrator Bryan Kaenrath said the project could generate more than $700,000 annually in tax revenue and create between 20 and 30 jobs. That figure, however, depends on whether the city approves a Tax Increment Financing and Credit Enhancement agreement. Developers are seeking a 20-year deal, citing extraordinary energy costs associated with running a data center.
“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,” Kaenrath said, calling the proposal a “huge win” for Lewiston.
But data centers are notoriously energy- and water-intensive, and communities across the country have reported utility rate increases following similar developments.
According to an FAQ posted by MillCompute, the company says it will not draw power directly from the local Central Maine Power grid, instead planning to activate what it describes as dormant available supply. The proposal also includes diesel generators for backup power.
In addition, developers plan to construct a 20- to 24-megawatt natural gas co-generation system inside the Bates Mill “Boiler House” to provide below-market electricity specifically for the data center.
Kaenrath deferred questions about energy usage and infrastructure to MillCompute. A spokesperson for the company did not immediately respond to a request for comment.
City councilors are expected to vote on a Joint Development Agreement, establishing the framework for the public-private partnership at their next regular meeting, scheduled for 7 p.m. Tuesday, December 16.
