Lansing City Council to vote on Deep Green data center today. Here’s what to know

The Lansing City Council is set to cast a pivotal vote today on a proposed $120 million data center by United Kingdom-based Deep Green. The project, slated for underused city-owned parking lots in the Stadium District, has undergone months of public debate and contract revisions. City officials, including Mayor Andy Schor, endorse the 24-megawatt facility, highlighting its potential to generate approximately $1 million annually in return-on-equity payments from the Lansing Board of Water and Light (BWL) to the city, $1.4 million from land sale, and $800,000 in tax-like revenue. Deep Green also committed $120,000 annually to BWL’s Pennies for Power program and at least 15 permanent jobs. A key selling point is the data center's innovative heat-reuse and closed-loop cooling system, which would integrate with BWL’s transition to a modern hot-water heating system. BWL CEO Dick Peffley stated that the byproduct heat could reduce the need for one or two standalone heating stations, including one planned for Wentworth Park. Deep Green has agreed to fund the necessary infrastructure connections to BWL’s system, helping to mitigate future rate increases. However, the project has encountered significant opposition from residents and some council members, who have raised concerns about its impact on the local power grid, water supply, environmental footprint, and the use of downtown land. Demonstrators have rallied outside City Hall. Second Ward Councilmember Deyanira Nevarez Martinez previously challenged the initial conditional rezoning application, prompting a restart of the rezoning and purchase agreement review periods to ensure commitments are legally binding. The revised proposal now formally pledges the $1 million annual payment, minimal water use comparable to 15 homes, upfront payment for energy infrastructure, and compliance with noise and design standards. The City Council requires a supermajority of six votes for the land sale and five for rezoning. As of mid-March, at least three council members were solid or likely "no" votes on the sale, emphasizing the need for robust, legally enforceable contracts addressing community concerns. Mayor Schor warns that rejecting the project would cost Lansing significant revenue and a unique opportunity to shape a data center development with negotiated benefits.