Developer files lawsuit against Gibraltar over proposed data center
Developers CAL Realty and Raeden Acquisitions have filed a lawsuit against the city of Gibraltar, Michigan, alleging that the city's enacted moratorium on data centers unlawfully blocked their proposed project. The developers contend the moratorium was specifically adopted to defeat their pending application, despite their project's adherence to zoning and minimal environmental impact claims.
CAL Realty and Raeden Acquisitions have filed a federal lawsuit against the city of Gibraltar, Michigan, alleging that the city's recently enacted moratorium on data centers was an unlawful measure specifically designed to block their proposed project. The lawsuit, filed on August 17 in U.S. District Court in Detroit, claims the City Council approved the moratorium after the developers applied for approval for a data center on a 42-acre property at 27800 W. Jefferson Ave., a former steel mill site.
The developers assert that the data center project is permitted by right under existing city zoning ordinances and that the city has refused to consider their site plan. They argue the facility would generate most of its own power and utilize a closed-loop cooling system, minimizing strain on municipal water and other infrastructure, and would have less environmental impact than the site's previous industrial uses.
CAL and Raeden are seeking a court declaration that the city's actions are unlawful, a requirement for approval of their site plan, and damages. City Administrator Rachel Witherspoon declined to comment on the pending litigation. The article notes that nearby cities like Taylor and Melvindale also imposed data center moratoriums, but without pending applications, while Allen Park's moratorium followed significant resident opposition to a separate data center proposal over concerns about utilities, noise, and potential health hazards.