Marshall data center moratorium delays development by at least one year
The Marshall City Council in Michigan approved a 365-day moratorium on data center approvals, delaying a project by Alterra Development at the Brooks Industrial Park. The decision stems from resident concerns over electricity, water usage, heat discharge, and potential noise pollution, as well as the desire for the city to create a new ordinance before project approval. Alterra had initially planned a gas generation plant but has since scaled back the project.
The Marshall City Council has enacted a one-year moratorium on data center approvals, pushing back development plans for at least a year. This decision impacts Alterra Development, which purchased 270 acres at the Brooks Industrial Park last October with the intention of building a data center.
The project quickly became controversial due to its proximity to wetlands and a lake, and concerns raised by residents regarding electricity, water usage, heat discharge, and particularly low-frequency noise. Marshall city officials, including Mayor Scott Wolfersberger, stated the moratorium allows time to address community concerns and ensure the project aligns with the city's interests. The city plans to use this period to draft an ordinance specifically limiting harmful vibrations before any data center receives approval.
Alterra Development had initially proposed a plan that included a gas generation plant and would have consumed one gigawatt of power. However, Mayor Wolfersberger confirmed that Alterra has decided against building the gas plant, effectively reducing the project's energy consumption by 60% and reclassifying it from a hyperscale to an enterprise-class data center. Despite Alterra's claims of bringing skilled jobs and tax revenue, many residents expressed feeling excluded from the initial decision-making process.