A new tidal power project is being proposed off Eastport, but whether the developer has the technical expertise and financial backing to proceed with the proposal is not clear. Along with planning to provide electricity to local communities, the company, DeepGreen Western Passage SPV LLC, is seeking to power underwater artificial intelligence-computer server racks.
The project proposes a 51-megawatt tidal energy and subsea data center in Western Passage off Kendall’s Head and extending south nearly to Harris Point in Eastport. On Feb. 11, DeepGreen Western Passage SPV LLC submitted an application to the Federal Energy Regulatory Commission for a preliminary permit for the project. The company is seeking a 48-month permit to conduct environmental baseline studies and engineering work.
The application states that the project would transition Western Passage “into a managed, data-integrated energy hub.” The project would include “universal docking cradles,” a subsea foundation system that would act as an electrical socket; subsea-compute pods, which would be high-density AI-computer server racks; and a tidal sensing power platform that would provide real-time telemetry and environmental compliance monitoring. It would include 170 turbines mounted in the docking cradles and 34 pods of the AI-computer server racks. While DeepGreen Western Passage is seeking a permit for 400 acres, the active infrastructure would occupy only about 7% of the space, or just over 27 acres.
The project, estimated to cost $415 million, would be financed initially through the company’s cash reserves and private equity, according to the application. Construction would be financed through private equity and green-AI institutional investors. The project also would seek federal tax credits through the Inflation Reduction Act.
While noting that Ocean Renewable Power Co. had obtained a preliminary permit from FERC for its Western Passage tidal power project, DeepGreen asserts in its application that its project is an “infrastructure-layer expansion,” with the docking cradles designed to host third-party hardware, including Ocean Renewable Power units.
Stuart Davis, CEO of Ocean Renewable Power, which has been working on tidal energy projects in the Eastport area for many years, said, “DeepGreen’s proposal for the Eastport area is an exciting development for tidal energy in Maine, and we’d welcome the opportunity to see ORPC power systems support their project.”
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While Ocean Renewable Power had announced in 2023 that it would be using Western Passage to develop its new Optimor tidal power system, Davis now points to the company’s earlier site in Cobscook Bay. “ORPC has a lot of activity planned at our Cobscook Bay site in 2026 and 2027, which we will provide more information about in the second quarter. Our current focus is in Millinocket, where we will begin testing of our next generation river system next month, which we believe will lower our delivered cost of electricity by up to 70%.” Ocean Renewable Power also has recently been awarded funding for a project in the St. Lawrence River in Quebec and is planning to deploy two devices there later this year.
Developer says project would use proven technologies
Real estate broker Louis Wolfson is the managing member of DeepGreen, based in Needham, Massachusetts. He said that the project development is in its preliminary stage but would use proven technologies. “We’re putting together resources” for the project, including reaching out to research teams in Maine and leaders in the industry. The company would not be producing its own turbine design, and Wolfson said he is reaching out to Ocean Renewable Power about being a potential partner. “We haven’t picked a turbine developer yet,” he said. “We want the best available technology to benefit everybody.”
The tidal turbines would provide energy both for the AI server racks and for electricity for Eastport and the Passamaquoddy Tribe, he said. Its preliminary proposal calls for a power line to come ashore at Kendall’s Head in Eastport.
According to the application, the company is pursuing a community benefits agreement with the city of Eastport and a memorandum of understanding with the Passamaquoddy Tribe at Sipayik. Eastport City Manager Brian Schuth said that, while he has spoken with Wolfson, there has not yet been any discussion about a formal agreement.
Of the AI data center, Wolfson said, “There’s a real need for it.” Noting that data centers utilize a great deal of energy, he wants to harness the energy of the tides to power the server racks, which would be underwater, with the surrounding water cooling them. Data centers generate massive amounts of heat and require intense cooling. Wolfson said other parts of the world are working on developing similar projects, with China having launched commercial‑scale undersea data centers to use seawater cooling for high‑performance computing.
Along with the Western Passage site, the company has filed for a preliminary permit from the Federal Energy Regulatory Commission for a site at Cook Inlet in Alaska, which happens to be the location of another Ocean Renewable Power tidal energy project.
Wolfson says his company is exploring different avenues for funding, including private equity and possibly federal grant funding. As for a timeline, he says, “We’d like to keep the momentum going.” If the federal commission grants a preliminary permit, then he says there could be a four- to five-year period before the company files for a federal license for the project. “The sooner we can get going to provide energy and data to the community and tax revenue, the better.” He added, “We’re bringing people together who are capable of providing the best product at the end of the day.”
“We look forward to working with the community and the Passamaquoddy Nation,” Wolfson said. “I treat my neighbors as I would like them to treat me. This has to be a win for everybody.”