Maine

Mainers could pay $32 million for grid upgrade in New Hampshire

Published

2 years ago

August 23, 2024

Mainers could pay million for grid upgrade in New Hampshire

Maine ratepayers will be on the hook for $32 million if Boston-based Eversource Energy follows through on a plan to rebuild a 49-mile transmission line in New Hampshire, according to Maine’s public advocate, who has joined other state officials in calling the scale of the project excessive.

Consumer Advocates of New England, the group of officials opposing the project designed to upgrade the New England grid, said Eversource has failed to demonstrate that it is a “reasonable use of consumer dollars.” Less than 8% of the line needs to be replaced, according to Eversource.

Maine Public Advocate William Harwood said the impact on a typical customer’s monthly bill would be modest. He didn’t provide a dollar estimate but said Maine ratepayers would be responsible for about 9% of the $360 million total cost of the project, though Eversource pegs the total at $384 million. The price tag would be spread over the useful life of the project – Eversource says the average age of transmission pole structures is up to 60 years – and reflect a return on profit of about 10%, he said.

The cost of electricity is an increasingly pointed subject as ratepayers are called on to finance grid upgrades to withstand frequent and destructive storms and accommodate greater electrification to heat buildings and charge electric vehicles to cut carbon from the atmosphere. Costly transmission upgrades are another matter and draw fire from consumer advocates, who say the projects unnecessarily add to ratepayers’ burden and aren’t adequately regulated.

Don Kreis, New Hampshire’s consumer advocate, accused Eversource of “unconstrained spending” on transmission projects.

“I’m proud to join my counterparts from around the region in opposing efforts to gold-plate the transmission grid and send the bill to everyone in New England,” he said.

Eversource’s service territory is Connecticut, Massachusetts and New Hampshire. Because its transmission lines are part of the New England grid, the region’s ratepayers pay for upgrades.

CRITICS: MORE REGULATION IS NEEDED

The state officials also criticized what they say is a “lack of meaningful oversight” over improvements to utilities’ privately owned facilities.

“We need an effective regulator to police this,” Harwood said. “If we don’t do anything, we should try to get (the Federal Energy Regulatory Commission) to exercise its authority.”

The New Hampshire project is the “poster child of what’s wrong with transmission regulation,” he said.

Proposals for new transmission lines are reviewed by federal regulators, transmission planners and the industry, but rebuilds or repairs such as what Eversource is proposing do not face similar scrutiny. Instead, state and local laws may require reviews and FERC may examine whether a utility’s spending decisions allow it to recoup costs from ratepayers.

The region’s ratepayer advocates said decisions about the scope of Eversource’s project and how much it will cost ratepayers “lie with the individual asset owner.”

If the utility follows through with the project, the ratepayer advocates say they might challenge the decision before FERC.

And the New England State Committee on Electricity, whose members are appointed by the region’s six governors, said without “information showing that this use of consumer dollars is well-supported and reasonable” that it’s prepared to “use its full resources to explore all available options to dispute the reasonableness of the investments, including but not limited to action at FERC.”

The owners and residents of property with a power line easement sued Eversource, FERC and the ISO on Aug. 16, demanding that the regulators play a greater role. Kristina Pastoriza and Ruth Ward, a New Hampshire state senator, asked the U.S. District Court in New Hampshire to order FERC to end the ISO-NE practice of exempting large transmission rebuild projects, including the Eversource plan, from a planning process “that will ensure that retail ratepayers who have no adequate remedy at law pay just, reasonable and nondiscriminatory rates.”

Pastoriza and Ward also asked the court to rule that an Eversource claim to rebuild the power line on their property is a breach of a 1948 easement and would unreasonably interfere with their rights and use of their property.

A FULL REBUILD IS EVERSOURCE’S PREFERENCE

Eversource sought the views of public officials and others at several meetings. It has proposed three alternative projects, but says its preference is a “full line rebuild.” That approach would have higher initial costs, but lower anticipated costs over time, the utility said. It also would avoid future disruptions to the environment and local communities and improve telecommunications capabilities for northern New Hampshire substations, the utility said. It’s estimated to be completed by 2026.

Eversource says rebuilding the power line will make the transmission system more resilient to extreme weather and will replace aging infrastructure that in many cases was built decades ago. Eversource said it engaged in “extensive community outreach.”

The utility said drone inspections in 2022 showed 41 natural wood structures dispersed throughout the length of the power line had woodpecker damage, rotted or split pole tops, cracked arms and other damage. Eversource also identified other parts of the line as high-priority concerns.

Harwood questioned why Eversource would favor replacing the entire transmission line of 583 structures if 41 are damaged. He called it an “example of excessive spending.” The utility says most of the structures are made of wood and would be replaced with steel structures.

Eversource offered as an alternative to replacing 43 structures and other nearby equipment that require immediate attention. But that project would lead to “many additional future structure replacement projects” as structures continue to deteriorate, Eversource said.

“Our initial analysis of a pared-back alternative that would leave some component of the line in place indicated that such an approach would ultimately result in higher costs over time as we would eventually need to go back and replace those other aging components,” an Eversource spokeswoman said.

Critics of utilities have called out projects upgrading transmission systems paid for by ratepayers while delivering a return for investors. “Therefore, their incentive is to build big things, whether or not those things benefit ratepayers or local communities,” said backers of last year’s unsuccessful ballot measure to establish a publicly-owned power company.

Annual spending by major U.S. electric utilities on electric transmission more than quadrupled to $40 billion in 2019, from $9.1 billion in 2000, according to the most recent data from the U.S. Energy Information Administration. Spending was focused on new transmission infrastructure and the operation and maintenance of transmission systems. Spending on new transmission capacity accounted for $23.5 billion, or 59%, of the $40 billion spent by major utilities.

Ari Peskoe, director of the Harvard Law School Electricity Law Initiative, said local transmission projects often involve replacing aging infrastructure for which it’s easier to obtain public permitting than new projects. The projects also are less expensive and are often more profitable, he said. Regional projects, on the other hand, are tougher to permit and typically require agreements among neighboring utilities to allocate costs, he said.

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Maine

A top issue in Maine and Oklahoma governors’ races? Tribal sovereignty. – ICT

Published

8 hours ago

May 14, 2026

Press Room

A top issue in Maine and Oklahoma governors’ races? Tribal sovereignty. – ICT

This story is part one of a two-part story on gubernatorial races to watch in the 2026 midterm elections as part of the #NativeVote26.

Pauly Denetclaw
ICT

Two of the 39 states with gubernatorial races have tribal sovereignty at the top of their policy agendas: Oklahoma and Maine. The two states where tribal nations have had friction with their state governments. Now Native voters in both states will be electing a new governor, and the results will impact the relationship between tribal governments and the state for the next four years.

Wabanaki Nations in Maine had a challenging time getting state legislation signed into law by Gov. Janet Mills, Democrat, that would strengthen tribal sovereignty. The 38 tribes in Oklahoma had a tumultuous relationship with Republican Gov. Kevin Stitt.

Eighteen of the 39 governor races in 2026 will have incumbent candidates, according to the National Governors Association. Stitt is the 2025-2026 chair of the association.

What’s happening in Oklahoma?

Over the past seven years, tribal nations and the state of Oklahoma had a contentious relationship — especially after the McGirt decision. Current governor, Stitt, who is a Cherokee Nation citizen, has been outspoken against the McGirt decision, tribal compacts for tobacco and car tags, and tribal gaming compacts.

Tribal-state compacts are legal agreements between federally recognized tribes and state governments. It is most commonly used for class III gaming — slot machines and table games.

“There was a time and a day when we used to compact with the tribes. That is not a unique thing across the nation. It wasn’t a unique thing in Oklahoma,” Chip Keating said during an April 6 candidates forum. “We absolutely have to hit the full reset button with the tribes — work together, treat them with the respect that they should have been treated with, and we’ve got to get back to compacting.”

Tribal leaders are looking forward to new state leadership, said Michael Stopp, president and chief executive officer of SevenStar Holdings.

“It’s good for the tribes and the tribal leaders are happy about it,” said Stopp, a citizen of the Cherokee Nation. “It has very much been a sticking point with tribal leaders that Governor Stitt has a very different perspective on sovereignty and what role the tribes play in this state. Obviously, we’ve had some big changes with the reservation status here because of the McGirt decision in 2020, but Governor Stitt, who is a member of the Cherokee Nation, has been more of an antagonist when it comes to that, than trying to help with the transition. I can definitely say the tribal leaders are looking for leadership change.”

Cherokee Nation Principal Chief Chuck Hoskin called Stitt the most anti-Indian governor in the state’s history. Oklahoma Attorney General Gentner Drummond described Stitt as having a “penchant of racism against tribes,” during an April candidates forum. He added that it was unacceptable.

Oklahoma Gov. Kevin Stitt is pictured during an interview in his office Wednesday, Aug. 3, 2022, in Oklahoma City. The Oklahoma Board of Pardon and Parole has recommended clemency for death row inmate James Coddington. Stitt said that he hasn’t been formally briefed on Coddington’s case, but that with any clemency recommendation, he meets with prosecutors, defense attorneys and the victim’s family before making a decision. (AP Photo, Sue Ogrocki) Credit: Oklahoma Gov. Kevin Stitt is pictured during an interview in his office Wednesday, Aug. 3, 2022, in Oklahoma City. The Oklahoma Board of Pardon and Parole has recommended clemency for death row inmate James Coddington. Stitt said that he hasn’t been formally briefed on Coddington’s case, but that with any clemency recommendation, he meets with prosecutors, defense attorneys and the victim’s family before making a decision. (AP Photo, Sue Ogrocki)

Tribal nations and state governments have to work together often. As seen in Oklahoma, Stitt vetoed several tribal compacts, despite overwhelming support by the state’s legislature, and this slowed the process for establishing the tobacco, car tag and gaming compacts between Oklahoma and tribal nations.

“Governor Stitt came in thinking that he could renegotiate this contract, and quite frankly, it just doesn’t work that way. Instead of listening and coming to the negotiating table, (Stitt) tried to come in with a really strong stance and ended up losing, honestly,” Stopp said. “I think that was unfortunate for him and for the tribes. Again, missing out on the chance of negotiating and I think the tribal leaders are definitely looking forward to having someone on the other side of the table to negotiate with.”

Oklahoma governor candidates

There are nine Republican candidates on the ballot for Oklahoma’s primary election set for June 16:

Gentner Drummond: 20th Attorney General for Oklahoma
Chip Keating: Former highway trooper and former Oklahoma Secretary of Public Safety
Mike Mazzei: Former Oklahoma state Senator and former Secretary of Budget
Charles McCall: Longest-serving Speaker of the House in Oklahoma history
Jake Merrick: Local radio host and former Oklahoma state Senator
Kenneth Sturgell: Local, small business owner
Leisa Mitchell Haynes: Former marketing director and former city manager
Calup Anthony Taylor
Jennifer Domenico-Tillett

Three Democratic gubernatorial candidates are also running for the primary election:

Cyndi Munson: Oklahoma House Minority leader
Connie Johnson: Former Oklahoma state Senator
Arya

Candidates will have to get more than 50 percent of the votes to avoid a runoff. If there is no outright winner, the top two candidates for each political party will head to a primary runoff election on August 25.

An additional three Independent candidates will automatically head to the general election this November.

Two important issues this election in Oklahoma are tribal sovereignty and a commitment to working with tribes.

During an April 6 Republican candidates forum, Gentner Drummond, Charles McCall, Chip Keating and Mike Mazzei, were asked to raise their hand if they shared Stitt’s perspective on the McGirt decision. Stitt was quoted as saying that the McGirt decision has torn Oklahoma apart and has created two justice systems based on race. None of the four candidates raised their hand.

“For three and a half years I’ve been working with every tribal leader in the state of Oklahoma, and I recognize them as unique among themselves, just like France is different from Germany,” Oklahoma Attorney General Gentner Drummond said during a candidates forum. “We have to honor and respect the culture of diversity that they bring to the table and the needs that they have. We have been working with tribal law enforcement each of the last three years to take the fight to organize crime in our rural communities. They are a great partner.”

All four candidates promised their administration would work with tribal nations and negotiate tribal compacts.

Mazzei said at two different candidate forums that he would be a strong negotiator with tribal nations.

In a recent interview with KOCO 5 News, local small business owner Kenneth Sturgell said tribal nations are their neighbors and should be treated as such. He also said that the state and tribal nations have to work together.

Jake Merrick, local radio host and former Oklahoma state Senator, was pleased that the state Supreme Court affirmed tribal nations’ right to hunt on their own lands, during a March 30 candidates forum.

Democratic candidate Cyndi Munson, Oklahoma House Minority leader, said in a recent press release that her caucus supports tribes.

“The Oklahoma House Democratic Caucus supports tribal sovereignty and acknowledges that our tribes fill important gaps in our education and healthcare systems, as well as other areas throughout our state,” Munson said. “I am extremely grateful for the work our tribes have done and continue to do despite vicious attacks on them by the Governor.”

A respectful working relationship between tribal nations and the state has shifted significantly since the last gubernatorial race in 2022.

“I think every one of them [Oklahoma governor candidates] has said something about it,” Stopp said. “[It’s] different than four years ago. It was an issue in the governor’s race, but it wasn’t a good issue. Here everyone’s saying yes, we want to change the tone and start the conversation differently. So I think as far as Indian voters go, that conversation is going to change regardless of who wins.”

Dawnland

In Maine, Gov. Mills repeatedly refused to sign a law that would strengthen tribal jurisdiction and recognize Wabanaki Nations right to access federal Indian laws. She vetoed the bill twice despite overwhelming support from state legislators.

“We’ve had multiple opportunities to send [legislation] to the governor’s desk and not just party line votes,” said Maulian Bryant, executive director of the Wabanaki Alliance and former Penobscot ambassador. “We generally have Democratic support, but we have gotten Republicans voting on these issues too. So, the governor has seen some great bipartisan work reach her desk and has still decided to veto some of these efforts.”

In order for tribes to access federal Indian laws, the state has to approve it. The Wabanaki Alliance, created to educate the people of Maine about tribal sovereignty, has been working diligently to amend the Maine Indian Claims Settlement Act of 1980.

Through the settlement, tribal nations ceded land in exchange for $81.5 million. However, it also drastically limited tribal sovereignty, and brought tribes under the jurisdiction of the state. Tribal nations that predate the state, are subjected to state jurisdiction and treated more like municipalities. The act was meant to be a living document but the state resisted changes for decades.

The Wabanaki Alliance has been able to increase tribal sovereignty and self-governance one legislation or amendment at a time. Throughout her two-terms, Mills has resisted a complete overhaul of the 1980 act and this created tension between the governor and tribal nations.

“If we had a governor that came in and fully embraced the inherent rights and inherent sovereignty of our people, and fully recognized that, it would strengthen our communities and it would also uplift the entire state of Maine,” said Bryant, who is Penobscot. “Our tribal communities are near rural places that could really use economic opportunities and could really use tribal businesses that are able to grow without all of these bureaucratic restrictions. We really are coming from a place of friendliness and we want to be good neighbors and we want to uplift the communities around us.”

The Wabanaki Alliance held a gubernatorial candidates forum in March where nine governor candidates participated:

Shenna Bellows, Democrat
Rick Bennett, Independent
John Glowa, Independent
Troy Jackson, Democrat
Derek Levasseur, Independent
Hannah Pingree, Democrat
Nirav Shah, Democrat
Angus King III, Democrat

None of the eight Republican candidates participated.

Most of the gubernatorial candidates generally supported increasing tribal sovereignty, recognizing inherent rights and working with tribal nations. Angus King III said he wasn’t educated on the topic enough to make any commitments and would have to look into it. This sentiment was shared by John Glowa and Derek Levasseur.

Hannah Pingree, Rick Bennett, Shenna Bellows and Troy Jackson firmly supported tribal sovereignty for Wabanaki Nations.

“If a governor comes in, and isn’t afraid of recognizing tribal sovereignty and sees it as an opportunity, I think we could see some real progress for everyone,” Bryant said.

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Maine

The 10 Most Popular Restaurants in Portland, Maine, Back in 1996

Published

20 hours ago

May 13, 2026

Press Room

The 10 Most Popular Restaurants in Portland, Maine, Back in 1996

It seems commonplace now that people visit Portland, Maine, for the food.

Portland is home to a mix of classic and new restaurants that people travel long distances to experience.

But that wasn’t always the case. Looking back 30 years ago, Portland, Maine, was home to delicious restaurants that were not home to many frills or fanfare.

Some of those restaurants are still rolling along today, others failed to move forward.

Here’s a look at the 10 most popular restaurants in Portland, Maine back in 1996.

Back Bay Grill

Officially opening its doors in 1988, the Back Bay Grill quickly became one of the places for fine dining in Portland, Maine.

In 1996, it was one of only a handful of restaurants within the city that would be considered upscale.

The Back Bay Grill ended its lengthy run when it closed permanently in 2022.

Becky’s Diner

Opening in Portland’s waterfront in 1991, it didn’t take long before Becky’s Diner was a regular part of the working waterfront’s routine.

As the working waterfront began diminishing, Becky’s has managed to transform itself into a place locals still enjoy while simultaneously serving as a tourist destination.

35 years later and Becky’s is still going strong.

Granny’s Burritos

Opening in 1995, Granny’s Burritos has taken on an almost mythical presence for that fondly remember it.

Granny’s called several different spots around time home over the years but remains fondly remembered for its stellar nachos and signature burritos.

The last iteration of Granny’s Burritos officially closed in 2017.

Fore Street

Officially opening in 1996, Fore Street is widely considered the restaurant that took Portland, Maine, and put it on the map for food.

Almost from the day it opened, Fore Street became a cornerstone to fine dining in the city and laid the groundwork for many other upscale restaurants to follow.

Fore Street still remains one of the most popular restaurants in Portland, Maine, 30 years after it initially opened.

Squire Morgan’s

Now home to Cutie’s, the corner of Market and Milk streets was once home to one of Portland’s most popular pubs called Squire Morgan’s.

Squire Morgan’s had a fantastic run in the city through the 80’s and early-90’s before a fire burned the restaurant in 1996.

Squire Morgan’s rebuilt but it was never the same and closed permanently in 1998.

DiMillo’s Floating Restaurant

There is something unique and elegant about dining aboard a floating restaurant. That has been the draw for DiMillo’s since it opened in 1982.

Like Back Bay Grill, DiMillo’s was one of a handful of restaurants in Portland during the mid-90’s where people could visit and receive upscale service and dining.

Despite the restaurant scene changing drastically around it, DiMillo’s remains a destination restaurant for many visiting Portland.

Silly’s

Even amongst a slew of restaurants serving pub grub and classic New England fare, Silly’s always stood out.

It was a quirky spot with a eclectic menu that people consistently flocked to, especially on the weekends. It became a staple in the city throughout the 90’s.

Silly’s had a couple of starts and stops in Portland in more recent times before finally reestablishing itself in Standish.

The Sportsman’s Grill

Opened in 1952, the Sportsman’s Grill on Congress Street was a staple of dining in Portland, Maine, for decades.

The restaurant was sports themed as the name would suggest and evolved over the years to draw in sports fan and casual diners.

1996 proved to be one of the final years for the Sportsman’s Grill as it closed permanently in 1997.

The Great Lost Bear

Originally known as Grizzly Bear, the Great Lost Bear got a name change in 1981 and really grasped a rapid fanbase throughout the 80’s.

The Great Lost Bear has always been known for its large menu and larger portions and was one of the first spots in town to fully embrace craft beer and champion it.

The Great Lost Bear remains a favorite for many as it approaches its 50-year anniversary.

Walter’s

Originally opening its doors in 1990, some credit Walter’s as a stepping stone restaurant to what most see throughout Portland today.

It was a cornerstone upscale restaurant throughout the 90’s and eventually sold in 2004.

Walter’s moved from its original location at 15 Exchange Street to 2 Portland Square in 2009 and operated there for years before closing permanently in 2019.

The New York Time’s Best Restaurant Lists Feature These 7 Maine Spots

Gallery Credit: Sean McKenna

61 Maine Restaurants That Closed in 2025

Gallery Credit: Sean McKenna

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Maine

Data centers are coming for rural America

Published

1 day ago

May 13, 2026

Press Room

Data centers are coming for rural America

At its peak, the Androscoggin paper mill in Jay, Maine, a rural town about 67 miles northwest of Portland, employed about 1,500 people — until a pulp digester exploded in 2020, forcing the mill to close permanently.

In 2023, the 1.4 million-square-foot facility was purchased through a joint venture by JGT2 Redevelopment and a number of other holding and capital companies. The project is led by developer Tony McDonald. Over the next three years, McDonald and his team broke down the mill’s machinery and shipped it to Pakistan, and worked to clean up the industrial site for resale. That resale agreement was finalized earlier this year, according to McDonald — turning Jay into the latest flashpoint over giant data centers in America.

Maine is particularly appealing for data center developers for its relatively cool year-round temperatures, lax land-use statutes, and 54 percent renewable energy mix, the eighth highest in the nation. There is a handful of planned data centers around the state, which recently prompted the state legislature to pass a bill ordering an 18-month moratorium on permits and building of any proposed data center that consumes more than 20 megawatts of power. Lawmakers wanted to pause construction in order to study data centers’ impact on local economies, the power grid, and the environment.

But that bill, which would have been the country’s first, was vetoed by Maine Gov. Janet Mills last month. In her veto, she cited one overriding reason: jobs. A $550 million facility proposed for the shuttered paper mill in Jay, she argued, would create 125 to 150 permanent, high-paying positions in a town that had watched its largest employer close.

From mill towns in Maine to farm counties in Indiana to desert plots outside Abilene, Texas, data center developers are telling local governments: Bring us in, give us what we need, add some tax breaks, and the jobs will follow. More than 35 states have responded by offering incentives and more to attract the industry.

There’s little research into whether massive industrial sites actually deliver the long-term economic gains they promise, but early reports suggest otherwise. Experts say that rural communities often lack the governmental expertise to properly assess how data centers might impact an area. According to recent Pew Research Center data, 67 percent of planned data centers in the US are headed to rural areas, and 39 percent are going to counties that currently have none. As data center development scales rapidly, it’s becoming clear that what rural communities around the country are actually getting isn’t jobs, but a power- and water-hungry industrial facility that temporarily employs about as many people as a midsize restaurant.

The data center fight in Maine

Originally, Tony McDonald had planned to sell the mill to an oriented strand board company called Godfrey Forest Products, which would have employed approximately 150 people, he said. When federal tariffs killed the financial backing for that project, McDonald pivoted to an idea he’d been getting pitches about.

“Most of the people that were contacting us, you know, they were all hat and no cattle,” McDonald said. He fielded multiple calls from what he terms “data center cowboys” who claimed to have one of the seven big tech companies as a client and were looking for a place to build a new data center. When he’d dig deeper on the caller, he’d find that they didn’t actually have the backing they claimed.

After a few conversations, he began pursuing a data center partnership with Sentinel Data Centers, a New York-based company that specializes in data centers serving the healthcare, financial, and hyperscale industries, according to its website. Sentinel did not respond to multiple requests for comment for this story.

McDonald says that, as he understands it, the project in Jay will be a neocloud data center, a specialized facility built to deliver high-performance GPU computing for AI and machine learning workloads. If a neocloud data center is going into the old mill, it will require more than 100kW of energy per rack, according to industry standards, and will need either direct-to-chip or immersion cooling, both of which require ample space and water resources.

“Most of the people that were contacting us, you know, they were all hat and no cattle.”

— Tony McDonald, JGT2 Redevelopment

While McDonald has repeatedly said that he is not interested in tax breaks for the project, he did want to leave the door open for potential tax benefits down the road if the town determines that it’s worth it. Just before Mills vetoed the moratorium, the Maine state legislature passed a law that excludes data centers from some of Maine’s tax breaks for businesses, but it leaves the door open for local municipalities to offer tax break agreements and other municipal incentives. That could spell trouble for small communities like Jay, hoping for a tax windfall to help them invest in schools, community buildings, and roadworks.

Maine state Rep. Melanie Sachs, the sponsor of the Maine moratorium bill, claims that McDonald did not inform the Jay Select Board of the new plan to turn the mill into a data center until late February 2026, just days before her moratorium bill was scheduled for a floor vote. Her bill was first introduced to committee on January 30th.

The Select Board heard McDonald’s presentation in March and voted 4-0 in support, according to The Maine Monitor. The moratorium bill passed both the state House of Representatives and Senate on April 14th, and Mills vetoed it on April 24th, citing the job creation in Jay as her reason.

Sachs, who chairs Maine’s House Energy, Utilities and Technology Committee, said her legislation was never about banning data centers. “This bill was about creating the playbook,” she said. “And we were told, ‘Don’t worry your pretty little heads about it, data centers are not coming to Maine anytime soon.’ They came anyway, and without a framework in place, towns have no mechanism to evaluate the claims developers are making.”

“Even if it’s 30 jobs, that means a lot to Jay, then, okay, but you’ve swept away protections for 1.4 million Mainers for 30 jobs,” Sachs said.

The economics of data centers

Michael Hicks, the director of the Center for Business and Economic Research at Ball State University, is an economist and a professor who last November published one of the first causal analyses of data center employment effects in the United States. He studied data center openings across 254 Texas counties and measured their actual effect on local long-term employment.

He found that net job creation was effectively zero. Whatever long-term jobs existed at data centers were being offset by losses elsewhere in the same sector.

”As you drive by a data center, you see people working on it,” Hicks said. “You see construction workers. The hotels locally are packed. But there’s no net pulse of that. A lot of these workers are there for three weeks to do their part of it, and then they’re gone … The real question is whether there are permanent jobs associated with data centers, and in Texas, the answer is no.”

“A lot of these workers are there for three weeks to do their part of it, and then they’re gone.”

— Michael Hicks, Ball State University

Texas serves as an ideal test bed because of its isolated grid and a mix of large, fast-growing metros and tech hubs alongside rural, remote towns, which mirrors the rest of the country. As Hicks puts it, it’s essentially a mini-United States with its variety of regions, and the economic lessons learned in Texas can be widely applied across the country.

Rural towns are often “outgunned” when trying to negotiate deals with large data center builders, said Anthony Elmo, public education funding defender at Good Jobs First, a nonprofit research center focused on corporate and government accountability in economic development.

“They don’t have the resources to negotiate,” said Elmo. “They don’t know what to ask for. They don’t have the legal expertise, and they don’t feel like they have the leverage, which I think is part of the issue.”

On the national level, the math isn’t much better, either. Business Insider recently reported that the national subsidy for data centers exceeded $2 million in costs per permanent job, and in some cases, like one in New York, companies received nearly $77 million in tax breaks for a facility that created exactly one permanent position.

Microsoft’s Quincy, Washington, facility, which is roughly comparable to the initial plan in Jay, employed as many as 500 workers during construction but now operates with just 50 full-time employees. The type of data center being built determines where on that spectrum of long-term employment a community lands. Neocloud data centers, like the one coming to Jay, can require 30 to 50 full-time staff, depending on size.

“Of those, say, 50 jobs, a chunk of them are maintenance, a chunk of them are technicians in charge of backup generators. The high-tech jobs make up maybe 10 percent of the facility,” Elmo points out. And many times, data center companies will count remote workers in other states as employees of the state in which the data center is located. “We may get a little bit of an economic effect from that, but it isn’t nearly as much as if it were a physical person in Maine buying goods and adding to the local economy,” he said.

Most of the lobbying around data centers focuses on job creation and “upskilling,” or training workers for new or better-paying jobs. But according to researchers, even the retraining argument holds little water.

Just under 30 percent of Jay’s population has a bachelor’s degree or higher, while 90 percent have a high school diploma, according to recent census data. And, as Ball State University’s Hicks says, education matters for upskilling.

In the 1800s, when farm laborers were sent into the workforce in the Midwest, they had a basic education that made them trainable for factory work. Following World War II, men and women returned from the factories and the battlefield having learned many new skills, and in the post-Civil Rights South, more Black men and women became educated and entered the workforce in ways they had been unable to before.

Neocloud data centers, like the one coming to Jay, can require 30 to 50 full-time staff, depending on size

As Hicks points out, each of these three industrial revolutions only worked because of the big, new supply of educated people ready to move into those jobs. By contrast, the US currently has negative net immigration, low birth rates, and consistently underfunded education; there is no equivalent human-capital “wave” to support a similar jobs boom in data centers and AI, he says.

“The waves of industrialization accompanied waves of human capital into the United States,” Hicks said. “So, where do we think there’s this surge of employment surrounding data centers that can mimic those three events?”

”The big tech companies are investing in upskilling the construction trades,” Elmo points out, citing OpenAI’s recent agreement with NABTU and noting that in fully developed data center markets, electricians and HVAC maintenance workers float from project to project as contractors. “For states that don’t have developed data center infrastructure, like Maine, it’s not a permanent job. It’s an 18-month job. That’s it.”

The jobs promise, Hicks argues, distracts from the one benefit a data center can reliably provide to a rural community: tax revenue.

Using the Jay data center as an example, Hicks says that a $550 million data center in a town of 4,620 people, where the median home value is around $215,000, would carry an assessed value exceeding the combined worth of every home and every business in the town. The former mill had a tax abatement but generated roughly $1.8 million in tax revenue for Jay in its last year of operation, according to the Livermore Falls Advertiser. Taxed at the same rate as any other commercial property, that revenue could fund schools, rebuild infrastructure, and attract residents for generations.

”You could make that town into a Hallmark Channel town with those sorts of tax dollars, and then jobs would follow,” Hicks said. But that all depends on whether or not the town decides to grant the future project special tax breaks.

Rural towns are often “outgunned” when trying to negotiate deals with large data center builders

It’s not clear precisely how much tax revenue the data center could generate, as of this reporting, because there are still many unknowns about the project, including who Sentinel’s clients might be, the type of data center that will be built, what kind of tax incentives the town Select Board might offer, and even how many jobs the data center might bring to Jay.

McDonald’s job estimates have been all over the map, ranging from 100 to 150 as the project has progressed. He says the numbers he gave the Select Board and the state legislature are based on what Sentinel has told him, but warned that he’s “not a data center guy.”

What data centers actually mean for jobs

Ultimately, this is a tech ouroboros. The same data center infrastructure, subsidized as a jobs program, is purpose-built to reduce human labor, and the AI it powers is explicitly designed to automate work. Communities are being asked to trade tax revenue and grid capacity for jobs in an industry whose core product is labor replacement.

“It’s the biggest capital expenditure since the Manhattan Project, and it isn’t going to create tens of thousands of jobs in the long term,” Elmo said. “It’s not some economic boom. Meta, Amazon, OpenAI, Oracle, they’re shedding jobs in real time while spending billions on data centers so that other organizations can shed additional jobs through AI. At some point, people need to ask more critical questions about this.”

As Hicks points out, rural America is being sold the same bill of goods it has been sold for 50 years. “Civic leaders are living 75 to 150 years in the past,” and framing these data center deals in the old industrial-boom mindset without the educational and demographic conditions that made previous booms possible.

The mill didn’t save rural towns, nor did the manufacturing center, the call center, or the Amazon warehouse. Based on the economic data, data centers will not save them either, and the one thing that could genuinely help — treating the facility’s tax base as a community windfall rather than a negotiating chip — is precisely what most states are legislating away.

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