Data center news: Warren weighs data center moratorium after storm exposes grid strain
Warren City Council is considering a temporary moratorium on data centers due to electrical grid strain and recent power outages. This comes as multiple Michigan communities and New York State are also grappling with data center developments, addressing issues from environmental impact and water usage to noise complaints and legal challenges. The state of Michigan is facing pressure to balance infrastructure needs with utility affordability amid rising power demands from data centers.
Warren City Council is slated to consider a temporary moratorium on data centers at its July 14 meeting. Council Secretary Mindy Moore requested the measure, citing significant strain on Warren's aging electrical grid, exacerbated by recent storms that caused extensive power outages. The city currently lacks specific zoning provisions for data centers, and a moratorium, if approved, would allow time to draft updated regulations.
The broader Michigan landscape shows varied developments: Oakland University's Board of Trustees voted to advance an AI data center despite campus opposition over environmental concerns and the proximity to a Native heritage site. In Saline Township, officials are investigating potential construction dewatering by Related Digital that may have caused a nearby pond to drop two feet. Separately, Hyperscale CEO Will Horne faced public scrutiny in Dowagiac regarding noise complaints and an active class-action lawsuit, promising to transition from cryptocurrency mining to AI computing and implement noise reduction measures. Meanwhile, the Lansing City Council enacted a 182-day moratorium on new data center development following the withdrawal of Deep Green's downtown proposal, allowing time to craft new regulations.
Beyond Michigan, New York Governor Kathy Hochul issued an executive order pausing hyperscale data center construction for up to a year, citing concerns over rising electric bills, noise pollution, and environmental impact. This action, alongside a Reuters/Ipsos poll indicating widespread public opposition to local data centers, underscores a growing national trend of resistance to AI infrastructure. Michigan's Public Service Commission is also under increasing pressure to balance infrastructure needs with utility affordability for Metro Detroit ratepayers amidst growing power demands from data centers.