Proposed data center won't move forward in Lansing as Deep Green withdraws

Deep Green, a UK-based developer, has withdrawn its application to purchase and rezone a parcel of city land in Lansing, Michigan, for a proposed 24-megawatt data center. The withdrawal, communicated by Deep Green CEO Mark Lee to Mayor Andy Schor and City Council members, occurred just hours before the Lansing City Council was scheduled to vote on the rezoning. Lansing City Council President Peter Spadafore confirmed the proposal would not move forward. Mayor Schor expressed disappointment, highlighting the potential $2 million in annual revenue for the city and new jobs, but acknowledged concerns from the public. Lansing Fire Commissioner Steve Purchase, representing the Northern Midwest Regional Council of Carpenters, supported the project, noting its appropriate scale for downtown Lansing and community benefits, including a plan for Deep Green to provide free waste heat to the Lansing Board of Water and Light (BWL)'s hot water system and an annual $120,000 donation to Pennies for Power. However, the proposal faced mixed reactions at a public hearing, with Michigan State University student Henry Jerred suggesting better alternative uses for the land, such as housing. Lansing Regional Chamber of Commerce President Tim Daman called the outcome "deeply disappointing," emphasizing the city's need for such investments. Following the withdrawal, some Lansing City Council members, including Deyanira Nevarez Martinez and Ryan Kost, plan to introduce legislation to increase regulations for data centers, potentially prohibiting them in commercial districts and requiring discretionary review in industrial areas. Deep Green CEO Mark Lee stated the company's commitment to responsible development in Michigan remains strong, aiming to build data centers that capture and reuse waste heat for community benefit.