Cleveland data center application rejected, developer weighs options amid proposed moratorium

A $1.6 billion, 150-megawatt data center campus proposed by Lakeland Equity Group in Cleveland's Slavic Village had its building application rejected by the city's Building Department. The rejection, which surprised the development team, was reportedly due to an incomplete submission, specifically the lack of site plans. Lakeland Equity Group expressed disappointment and is currently considering its immediate next steps, including potential legal action, but did not confirm specifics. The proposed three-building facility on a 35-acre site, currently owned by Morabito Enterprises, is projected to consume electricity equivalent to a small city, raising concerns among residents about utility costs. The developer stated it would invest heavily in local electrical grid infrastructure and utilize "closed-loop technology" for water cooling to minimize consumption. The rejection occurs amidst efforts by Cleveland City Council to pass a moratorium on new data center construction. Ward 15 Councilman Charles Slife, author of the moratorium legislation, introduced the measure on April 27, citing concerns over the city's current zoning codes not adequately differentiating between various types of data service companies and the potential impact on communities and utility costs. The emergency ordinance, which would take effect immediately if passed by a two-thirds vote, is currently undergoing administrative review and could be voted on before the council's summer recess. The councilman's skepticism is fueled by the developer's perceived expedited timeline to get the project approved before zoning changes might occur.