Weekly Data Center Watch: Saline Reverses Tax Break Limit as Augusta Vote Nears
Saline Township trustees reversed a decision to limit a tax exemption for Oracle's proposed data center, now approving a $43 billion investment. Meanwhile, Augusta Township voters will decide on a rezoning referendum for a Thor Equities data center, amidst ongoing recall efforts against the township board. Additionally, six tech companies signed a state pledge committing to cover infrastructure costs and protect water resources for their Michigan projects.
Michigan's data center landscape saw significant activity this past week, particularly in Washtenaw County. In Saline Township, trustees unanimously reversed an earlier decision, approving Oracle's industrial facilities tax exemption for a proposed $43 billion investment. Attorney David Landry advised the board that maintaining a previously adopted $4.8 billion limit would likely result in an unwinnable lawsuit for the township.
Neighboring Augusta Township is facing a pivotal Aug. 4 referendum where voters will determine the fate of a 522-acre rezoning for a Thor Equities data center, overturning a conditional approval by the township board. Concurrently, recall petitions against all seven township board members have been approved for circulation by the Washtenaw County Election Commission, requiring 934 valid signatures per official by July 31. The township board is also set to consider a second reading of an ordinance that would allow for temporary zoning moratoriums, while the planning commission works on permanent regulations for "high resource demand facilities."
Separately, six technology companies—Anthropic, Google, Microsoft, OpenAI, Oracle, and Verrus—signed Gov. Gretchen Whitmer’s Michigan Affordability and Responsible Growth Pledge. This voluntary commitment binds the companies to cover electric system and infrastructure costs, secure additional energy, protect water resources, and prioritize Michigan workers. Discussion forums on data center impacts are also ongoing, with State Rep. Reggie Miller and Ypsilanti Township Supervisor Brenda Stumbo participating in a recent event. Supervisor Stumbo voiced support for a statewide pause, mirroring a proposed one-year moratorium legislation introduced by Sen. Jim Runestad.
In Dowagiac, residents continue to express concerns over noise from a computing facility transitioning to AI and cloud operations, leading to city noise violation notices and a federal class-action lawsuit filed in May.