Weekly Data Center Watch: Local Oversight Expands as Projects Move Forward
Ypsilanti Township enacted a 180-day moratorium on major electric utility facilities relevant to data centers, while the City of Ypsilanti considered new permanent data center regulations. Oracle's tax abatement application in Saline Township is under state review amid a legal challenge, and the City of Saline is pressing regulators on Related Digital's wastewater permit. Additionally, an Augusta Township recall effort failed, though voters had previously overturned a data center rezoning.
Ypsilanti Township's Board of Trustees approved a 180-day moratorium on August 18 for establishing or expanding major electric utility facilities, specifically citing the high electrical demands of data centers and AI computing. This action is particularly relevant to the University of Michigan's planned research computing center, which includes a proposed 110-megawatt substation. Simultaneously, the City of Ypsilanti Planning Commission held a public hearing on August 19 to establish permanent data center regulations covering location, site design, noise, water use, energy efficiency, and decommissioning.
In Saline Township, Oracle America Cloud Services LLC's tax abatement application is currently under review by the Michigan Department of Treasury. Attorney Ellis Boal filed a formal objection on August 12, alleging that the township failed to hold a legally required public hearing before creating the Industrial Development District necessary for the tax break. Separately, Related Digital confirmed its purchase of the Rustic Glen Golf Club, an 18-hole course adjacent to its Saline Township data center, stating it has no plans for redevelopment and the course will remain open.
The City of Saline is challenging the Michigan Department of Environment, Great Lakes and Energy (EGLE) regarding a wastewater discharge permit for Related Digital's treatment plant at its Saline Township data center. Saline officials are seeking written confirmation that the facility will only handle domestic wastewater and are concerned about the discharge's impact on existing city permits and the Saline River. Clinton Township in Lenawee County has also requested a public hearing from EGLE on the matter.
Elsewhere, a recall effort targeting Augusta Township Board members, initiated after their 2025 decision to rezone land for a data center, was rejected by Washtenaw County Clerk Lawrence Kestenbaum due to procedural errors in petition circulation. This occurred despite Augusta Township voters having previously overturned the rezoning for the proposed data center project on August 4.