Developer: Gibraltar data center could support DTE grid with diesel generators

The Gibraltar City Council has imposed a one-year moratorium on data center development, including a proposed 100-megawatt facility by Raeden, following a contentious town hall meeting on March 11. Approximately 150 residents expressed significant concerns regarding the project's potential impact on air quality, electricity costs, and the nearby Humbug Marsh, which is part of the Detroit River International Wildlife Refuge. Raeden Co-Founder and Chief Operating Officer Jason Green, whose company has partnered with Bedrock since 2020, stated that the proposed $2 billion inference data center would feature 30-35 backup diesel generators. He suggested these generators could support DTE Energy's grid during peak demand, despite a similar, larger-scale proposal in Virginia being halted due to air pollution concerns. DTE spokesperson Ryan Lowry declined to comment on Raeden's specific ideas, while Michigan Public Service Commission spokesperson Matt Helms clarified that DTE has not yet filed a data center tariff, though it is required to do so. Community members like Emily Coaker, a healthcare worker, highlighted potential public health risks from the diesel generators, referencing a Harvard study on a Virginia data center complex. Residents also voiced fears that the project, planned for the former McLouth Steel property near the Humbug Marsh, could damage the sensitive ecological area. Gregory Gaskin questioned how the data center's power demands would avoid increasing utility bills for other Michigan ratepayers, a concern echoed by consultant Douglas Jester of 5 Lakes Energy, who warned of potential cost shifts to residential customers. Despite the moratorium, which Councilmember Cody Dill confirmed applies city-wide, Green expressed hope of convincing the council to rescind it or for his company to obtain a waiver, as allowed by the moratorium's language. He indicated a reluctance for litigation, stating that community support is crucial for the project's viability.