Lansing City Council to consider temporary moratorium on new data centers

The Lansing City Council is poised to consider a temporary moratorium on new data center developments, a move prompted by strong community opposition to a recent project. Councilmember Ryan Kost introduced a draft ordinance that would halt the issuance of building permits and the processing of zoning amendment applications for new data centers for 182 days. This period is intended to allow the city to develop comprehensive guidelines for data center regulation, particularly concerning zoning. The proposal comes after the United Kingdom-based company Deep Green withdrew its plans for a $120 million, 25,000-square-foot data center in downtown Lansing. The project had faced months of pushback from residents, who cited environmental concerns, a lack of transparency regarding power supply from the Lansing Board of Water & Light (BWL), and questions about the suitability of a data center in the downtown area. Councilmember Kost, who had intended to vote against the Deep Green project, emphasized that the moratorium is a direct response to this significant community opposition, acknowledging that future data center proposals are likely. Councilmember Deyanira Nevarez Martinez also supported stronger regulation, having drafted an ordinance to prohibit data centers in commercial and downtown commercial districts and mandate discretionary review in industrial zones. While Deep Green's project was championed by the company, BWL, Mayor Andy Schor's administration, and some business leaders as beneficial for the city, the residents' concerns ultimately led to its withdrawal just hours before a scheduled council vote. The temporary moratorium, if approved, would provide Lansing with time to establish a regulatory framework before considering new data center projects.