iToverDose/Technology· 13 MAY 2026 · 11:01

How abandoned mills in rural US are becoming AI data centers

Abandoned industrial sites in rural America are getting a second life as data centers, bringing new jobs and investment to struggling towns like Jay, Maine.

The Verge2 min read0 Comments

In the quiet town of Jay, Maine—roughly 67 miles northwest of Portland—a once-thriving paper mill that once employed 1,500 people now stands empty after a 2020 explosion forced its permanent closure. But instead of remaining a relic of the past, the 1.4-million-square-foot facility is being transformed into a modern data center, a shift that reflects a growing trend across rural America.

From paper to pixels: The rebirth of industrial ruins

The Androscoggin mill, once the heart of Jay’s economy, closed after decades of operation. Its machinery was dismantled and shipped overseas, and the site underwent extensive cleanup to prepare for its new purpose. Earlier this year, a deal was finalized to repurpose the facility, marking a significant milestone in the town’s economic revival.

The project was spearheaded by developer Tony McDonald and a team of investors, including JGT2 Redevelopment and several capital firms. Over three years, they transformed the space from an industrial wasteland into a facility capable of supporting high-powered computing infrastructure. This transition from pulp to processors highlights how rural areas are adapting to meet the demands of the digital age.

Why rural America is the new frontier for data centers

As demand for AI and cloud computing surges, companies are increasingly looking beyond urban hubs to build data centers. Rural locations offer key advantages: abundant land, lower operational costs, and access to renewable energy sources like hydropower. In Maine, for example, the Androscoggin mill’s proximity to cheap, reliable electricity made it an ideal candidate for such a project.

This trend isn’t isolated to Maine. Across the U.S., former industrial sites—abandoned factories, shuttered warehouses, and even old shopping malls—are being converted into data centers. These projects not only breathe new life into struggling communities but also bring much-needed jobs and infrastructure upgrades. For towns like Jay, which have faced economic decline for decades, such investments can be transformative.

Challenges and opportunities in repurposing industrial spaces

While the potential benefits are clear, converting an old mill into a data center isn’t without hurdles. Cleaning up decades of industrial pollution, upgrading infrastructure for high-tech equipment, and ensuring reliable power and connectivity require significant investment. Additionally, local communities must weigh the long-term economic gains against potential environmental and social impacts.

However, the rewards can be substantial. Data centers can provide stable, high-paying jobs in regions where traditional industries have faded. They also attract ancillary businesses, from logistics companies to tech startups, further boosting local economies. The Androscoggin mill’s transformation serves as a case study in how rural America can leverage its assets to thrive in the digital economy.

What’s next for Jay and rural data centers?

The Androscoggin mill’s new chapter is just one example of a broader movement reshaping rural landscapes. As AI and cloud computing continue to expand, more companies are expected to explore similar opportunities in non-traditional locations. For towns like Jay, this could mean a sustainable economic future—one where old industrial giants are reborn as engines of innovation.

AI summary

ABD’nin kırsal bölgelerinde terk edilmiş fabrikalar, veri merkezlerine dönüşerek hem ekonomik canlanma hem de çevresel riskler oluşturuyor. Maine eyaletindeki Androscoggin kağıt fabrikasının hikayesi, bu dönüşümün hem fırsatlarını hem de zorluklarını gözler önüne seriyor.

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