Data centers and property rights: What Michigan residents need to know

Data center proposals are on the rise across Michigan, sparking concerns among residents regarding potential land acquisition through eminent domain and the extent of local government control over such developments. State Representative Jennifer Wortz of Quincy addressed these anxieties in a letter to her constituents, clarifying that Michigan's eminent domain laws generally do not apply to private companies, but are typically limited to the state and public utilities. Wortz highlighted that state and local governments can still facilitate large-scale development through rezoning, tax incentives, and infrastructure investments, often before public awareness fully grasps the implications. She advised property owners to exercise caution when negotiating agreements with developers and to seek independent legal counsel, while also stressing the importance of organized community engagement in planning and zoning processes.

Catherine Mullhaupt, a staff attorney with the Michigan Townships Association, noted the increasing number of data center proposals townships are receiving. She explained that zoning ordinances are a primary tool for management, but Michigan's exclusionary zoning rule prevents local governments from issuing blanket denials for lawful land uses as long as there is demand and suitable land. Delta Township Manager Brian Reed confirmed his community has proactively modified its zoning ordinance, defining data centers and restricting them to industrial zones to minimize impact on residential or commercial areas. He urged residents to monitor local planning commission and township board agendas. In response to growing development, some mid-Michigan communities, including the city of Lansing, have introduced temporary pauses on data center projects to allow time for local governments to review and update their regulations.