Local committee delivers Data Center impact study
Groveland Township in Michigan enacted a one-year moratorium on data centers and formed a committee, GTRAC, to study their impacts. GTRAC delivered a 100-page report to the township planning commission, recommending protective zoning ordinances and master plan amendments. These recommendations aim to guide future development and protect the township's rural character before the moratorium expires in February 2027.
The Groveland Township Board of Trustees in Michigan unanimously voted in February to enact a temporary one-year moratorium on data centers, pausing their expansion into rural areas. To utilize this time, the board established the Groveland Township Residents Advisory Committee (GTRAC) in April, comprising seven local citizens tasked with investigating the potential impacts of data center facilities.
On August 17, GTRAC delivered a comprehensive, 100-plus-page "Data Center Impact Assessment" to the township planning commission. This study aims to provide data-driven insights to help the township protect its rural character and guide smart future development. GTRAC chair Melissa Ford stated that the committee's role was to provide evidence-based facts to help the Planning Commission draft zoning ordinances based on the township's Master Plan, focusing on water protection and public health and safety.
The committee recommended several actions, including independent studies on hydrogeology, arsenic mobilization, fire protection, noise, and grid capacity, with all costs borne by applicants. They also proposed adopting a protective data center ordinance, including a Special Land Use permit, surety bond requirements, and air, water, noise, and lighting standards, which must precede any application. Furthermore, GTRAC suggested amending the Master Plan to include a data center incompatibility policy, source water protection language, and infrastructure cost policies that require 100% developer funding. A joint meeting between the Planning Commission and Board of Trustees is anticipated in September to discuss these recommendations before the moratorium expires in February 2027.
While Groveland Township focuses on potential strains on energy grids and increased water usage, the State of Michigan has been supporting data center development through tax incentives. Gov. Gretchen Whitmer signed new legislation in April 2025, Public Act 181 and 207 of 2024, which eliminates Michigan's 6% sales and use tax on eligible data center construction and equipment purchases for qualified entities.