Michigan utility OKs 12-month ban on supplying water for data centers

The Ypsilanti Community Utilities Authority (YCUA) in Michigan has enacted a 12-month moratorium on providing water and sewer services to hyperscale and mid-size data centers, artificial intelligence computing facilities, and high-performance computational centers. This decision, approved on Wednesday, April 22, 2026, was spurred by a request from Ypsilanti Township, where a $1.2-billion data center project by the University of Michigan (U of M) is planned. The moratorium will remain in effect pending the completion of several environmental and water system studies. YCUA Executive Director Luke Blackburn stated that an updated wastewater master plan is needed, with the current one dating back to 2018. Ypsilanti Township Supervisor Brenda Stumbo, also a YCUA commissioner, highlighted concerns about limited water and sewer capacity, noting that two large data centers could exhaust their reserves, potentially hindering future residential and business development. The University of Michigan's proposed facility alone could use up to 500,000 gallons of water daily, while Thor Equities' $1-billion data center in Augusta Township, also within YCUA's service area, might consume 1 million gallons daily. Both Ypsilanti and Augusta Townships have expressed significant opposition. The Ypsilanti Township board has passed resolutions opposing the U of M/Los Alamos project, particularly citing its proximity to the Huron River and the potential for nuclear weapons research by Los Alamos National Laboratory. Residents, including Ypsilanti City Councilmember Me’Chelle King and Leah Mills-Chapman from the West Willow neighborhood, voiced support for the moratorium, linking it to racial and environmental justice concerns in an area already facing high pollution exposure. Despite local opposition, the University of Michigan's project is exempt from township zoning requirements as a public university. Augusta Township resident Wendy Albers also supported the moratorium, noting that the Augusta Township board had approved rezoning for Thor Equities' data center despite community pushback. Neither U of M nor Thor Equities responded to requests for comment on the utility's moratorium.