Michigan communities are hitting pause on data centers. The clock is ticking.
At least 52 communities in Michigan have enacted data center moratoriums to develop new regulatory frameworks amidst growing local opposition and concerns over water and energy consumption. Lawmakers in the Michigan Senate have also proposed statewide moratoriums or stricter regulations for data center projects. Residents like Craig Kreutzberg in Lyon Township are vocal about their frustrations, despite a moratorium there not impacting the already-approved Project Flex.
Over 50 Michigan communities have implemented temporary data center moratoriums, pausing the approval of new permits to allow time for developing robust regulatory frameworks. This widespread action comes as Michigan has become an attractive location for AI data centers due to its cooler climate, abundant freshwater, and sales tax exemptions, with at least 30 such projects underway or planned.
However, residents and local officials are increasingly concerned about the strain these facilities place on local infrastructure, particularly regarding water and energy consumption. Craig Kreutzberg, an organizer in Lyon Township, expressed outrage over the millions of gallons of water consumed by data centers, citing the ongoing Project Flex, a 1.8 million square-foot data center complex, as a prime example. Despite the recent 180-day moratorium enacted by Lyon Township officials, it will not affect the already-approved Project Flex.
Legal experts, including Michael D. Homier and Christopher Patterson, affirm that moratoriums are a reasonable tool for municipalities to create new zoning ordinances and conduct impact studies on environmental factors, noise, and utility capacity. They note that the Michigan Zoning Enabling Act prevents outright bans if there's demonstrated need, but allows for new regulatory frameworks. The typical six-month to one-year moratorium period is considered a tight but defensible timeline for such comprehensive work.
Recognizing the pressure on local communities, lawmakers in the Michigan Senate have proposed bills for a statewide one-year moratorium on data centers, as well as alternative legislation to introduce stricter state-level guardrails and requirements for these developments.