Detroit convenes data center zoning and policy working group

Detroit City Councilman Scott Benson has established a cross-sector workgroup to address zoning policy for data center developments in the city. The formation of the "data center stakeholder working group" comes after the City Council passed a resolution in March, spearheaded by Benson, urging Mayor Mary Sheffield to enact a two-year moratorium on new data center permits. The resolution aims to allow the city to thoroughly understand the infrastructure, environmental impacts, and economic implications of such developments before proceeding. Benson emphasized the critical need for Detroit to establish a comprehensive data center-focused zoning policy by December 31. He highlighted that while data centers represent significant capital investment, they also pose complex challenges to the city's infrastructure and neighborhoods, particularly concerning the electrical grid, environment, and community return on investment. The workgroup, comprising representatives from various city departments, the Detroit Economic Development Corporation, DTE Energy, unions, and tech officials, will assess the potential footprint of data centers and advise on policy recommendations. Discussions within the group touched upon the competitive nature of attracting data center business, with DTE Energy representatives noting that other cities like Southfield are eager for development. However, environmental and community voices, such as Erma Leaphart from the Sierra Club Michigan Chapter, stressed the importance of thorough examination and robust community engagement. Detroit Planning and Development Director Marcell Todd expressed optimism that the nine-month window would allow for a well-considered policy, balancing competition with other urban issues, akin to past policies for casinos and marijuana establishments. The article also contextualizes Detroit's efforts within a broader Michigan trend, where about 20 communities have either passed or proposed data center moratoriums. State lawmakers recently approved tax breaks to attract the industry, leading to increased interest. DTE Energy confirmed successful hyperscale data center projects in Saline and Van Buren Township, including one with Oracle, which are expected to provide affordability benefits to customers. While Detroit is not currently seeing hyperscale proposals due to space constraints, city officials like Detroit Water and Sewerage Department Director Gary Brown affirmed the city's ample water capacity, despite ongoing learning and engagement regarding data center impacts.