Data Centers Are Inevitable, Shady Deals Shouldn’t Be
This article, an opinion piece, argues that while data center development is inevitable, communities should not be exploited by developers using "shady deals." It highlights concerns over environmental impact, job promises, and tax abatements, citing examples like Janesville, WI, and Saline, MI, where a developer sued the township after a zoning denial to force approval.
Elijah Bosslet, writing for The Loyola Phoenix, asserts that data center development, driven by the demands of AI, is an inevitable trend, but warns against developers exploiting communities through unethical practices. Bosslet points to the immense water and energy demands of data centers as a primary environmental concern, which, alongside job displacement fears, fuels bipartisan opposition nationwide. Despite public sentiment, developers often secure projects by promising tax revenue and job creation, frequently employing non-disclosure agreements and aggressive negotiation tactics.
The article highlights the case of Saline, Michigan, where Related Digital, a development partner of OpenAI and Oracle, sought to rezone agricultural land for a data center in August 2025. When Saline Township’s Board of Trustees denied the rezoning, Related Digital sued the small community, ultimately forcing a $14 million settlement and the approval of a 250-acre data center with a significant 12-year, 50% tax abatement. Bosslet also briefly mentions Janesville, Wisconsin, where officials negotiated for a year under an NDA.
Bosslet argues that communities often find themselves at a disadvantage, forced to approve projects despite local opposition and left with expanded utility infrastructure without the promised economic benefits. The piece concludes by urging a shift in focus towards ensuring communities can genuinely benefit from data center development, rather than being subjected to unfair negotiations and legal battles.