Lewiston Weighs $300 Million AI Data Center Project in Historic Mill
December 13, 2025
The city of Lewiston, Maine, is poised to make a significant entry into the high-tech infrastructure sector as its City Council prepares to vote on a major redevelopment proposal. The decision highlights the growing trend of repurposing industrial-era assets for the demands of the artificial intelligence economy, which requires substantial computing power, energy, and specialized facilities.
On Tuesday, the council will consider a plan from developer MillCompute and the building's owner to convert the vacant Bates Mill No. 3 on Mill Street into a state-of-the-art AI data center. City Administrator Bryan Kaenrath framed the project as a transformative opportunity. "This is an opportunity for Lewiston to lead and really put us on the map for the 21st century economy," he said. The building's owner had previously explored residential and commercial uses for the site before shifting focus this year toward "high technology reuses."
The proposed investment totals $300 million. The project would occupy the 170,000-square-foot, four-story mill building, dedicating the first two floors to data center operations and the upper two floors to office space. To support the development, the city is offering a 20-year tax increment financing (TIF) agreement. Under this structure, the city would forgo a portion of property taxes initially, receiving approximately $798,250 annually for the first decade and about $964,875 annually for the following decade. Officials state the TIF is designed to help offset the facility's substantial electricity costs.
Kaenrath noted the development is expected to create between 20 and 30 permanent positions. "These are jobs that are jobs of the future," he emphasized. Addressing common concerns associated with data centers, city staff and the developer have outlined plans to manage the project's resource demands. Kaenrath asserted the project would not adversely impact local water quality or supply. To address potential strain on the power grid and ensure reliability, the developer is planning investments in grid infrastructure and intends to generate a portion of its own power on-site using natural gas-fed cogeneration, a process that captures and utilizes waste heat.
Regarding location-specific challenges, Kaenrath pointed to Maine's cooler climate as a natural advantage for cooling the energy-intensive servers and noted the site's position in a commercial-industrial area, adjacent to Baxter Brewing and near the police department and local eateries, minimizes residential impact. Noise mitigation measures, including the construction of additional walls around the center, are also part of the plan.
The council's upcoming vote represents a critical juncture for Lewiston, balancing the promise of economic revitalization, future-oriented employment, and new tax revenue against the logistical challenges of hosting advanced digital infrastructure.
Source: wmtw
