In Ypsilanti, battle lines draw over data centers and sewage

The Ypsilanti Community Utilities Authority (YCUA) in Washtenaw County, Michigan, has enacted a one-year moratorium on new hyperscale data center connections due to concerns about the impact on the region's wastewater system capacity and transmission lines. Luther Blackburn, executive director of the YCUA, stated that this measure is necessary to safeguard the system's capacity, integrity, and long-term sustainability for its 330,000 customers across 12 municipalities. This action is believed to be a novel approach, contrasting with other communities that have focused on zoning or general moratoriums.

Doug Winters, an attorney representing Ypsilanti Township, expressed fears that two specific large data center projects could consume nearly all of the wastewater system's excess capacity, potentially hindering all future residential, commercial, and industrial development in the township until major plant expansions occur. The two projects in question include a $1.2 billion facility by the University of Michigan in collaboration with Los Alamos National Laboratory, and a $1 billion data center near Milan by Thor Equities, both targeted by the moratorium.

The University of Michigan has strongly opposed the moratorium and is threatening legal action, arguing that the YCUA is unlawfully blocking their access to existing surplus water capacity. U-M spokesperson Paul Corliss voiced disappointment, stating that recent actions do not reflect good faith engagement. Experts, such as Joe Sovas of Matrix Consulting Engineers, suggest that data centers typically return significantly less water to wastewater systems (20-30%) than the 50% estimated by the utility, particularly with advanced cooling technologies.

Ypsilanti Township officials and other opponents of data center proliferation criticize state legislators and Governor Whitmer for approving new tax incentives for large data centers in 2024 without adequately assessing the capacity of local water and wastewater systems. These incentives require connection to municipal water systems, which critics like Winters argue has invited numerous hyperscale projects seeking "windfall profits" rather than creating substantial local jobs. The debate in Ypsilanti highlights a growing statewide tension over data center development and its infrastructural demands.