Marshall data center moratorium delays development by at least one year
The Marshall City Council has enacted a one-year moratorium on data center development, specifically delaying Alterra Development's project. This pause allows the city to address community concerns, particularly regarding low-frequency noise, electricity, and water usage, and to develop a new noise ordinance. Mayor Scott Wolfersberger stated the delay ensures the project meets community standards.
The Marshall City Council in Michigan has approved a one-year moratorium on data center development, directly impacting a project by Alterra Development at Brooks Industrial Park. The decision, approved this month, will delay any construction until at least August 2027, as city officials aim to address resident concerns regarding the data center's potential impact on electricity, water usage, heat discharge, and especially low-frequency noise.
Mayor Scott Wolfersberger stated that the moratorium provides an opportunity for the city to ensure the project aligns with community interests and for Alterra to address these concerns. The city plans to use this period to develop a new ordinance to limit harmful vibrations from data centers. Alterra had initially proposed a gas generation plant alongside the data center, which would have used one gigawatt of power, but has since decided against it, reducing the project's energy needs by 60% to become an "enterprise-class data center" rather than hyperscale.
Wolfersberger acknowledged that the Finance Authority did not consider environmental concerns when selling the land in October but emphasized the city's learning process since. He also addressed what he called misinformation about data center water use, explaining that modern closed-loop systems are efficient. Alterra Development is still undergoing due diligence for the project, and the city is also monitoring potential state-level data center legislation from Lansing that could affect local control.