Lansing passes 6-month data center moratorium

The Lansing City Council voted 7-to-1 to implement a 182-day moratorium on new data center development, pausing all new proposals until January 25, 2027. This ordinance was introduced following the withdrawal of a proposed downtown data center by AI company Deep Green in April, which had sparked considerable debate. The council intends to utilize the moratorium period to establish clear regulations and a specific definition for data centers within the city.

During Monday night's meeting, public comments reflected divided opinions. Some residents and union representatives, like Jason Brown of UA Local 333 and Brad Clark, expressed concerns that the moratorium might deter investment, reduce tax revenues, and limit economic diversification in Lansing, urging the council to draft regulations promptly without excluding developers. Conversely, Nicole Keway Biber from Clean Water Action advocated for robust environmental and operational requirements, including escrow accounts for decommissioning, protection of drinking water, prohibitions on new fossil fuel emissions, fortified noise ordinances, and environmental impact statements, suggesting that if these requirements deter developers, it is a positive outcome.

Councilmember Ryan Kost, who initially drafted the moratorium, dismissed worries about pushing businesses away, noting that many communities across the state are also exploring similar pauses. Councilmember Jeremy Garza was the sole dissenting vote, arguing that the moratorium "sends the wrong message" by targeting data centers specifically rather than addressing environmental concerns across all development types. Councilmember Trini Pehlivanoglu clarified that the moratorium is a temporary measure to allow for thoughtful policy crafting, ensuring the city does not "build the plane while I'm flying it."