East Lansing Weighs Data Center Rules Ahead of Moratorium Deadline

The City of East Lansing has initiated a staff workgroup to develop recommendations for updated zoning rules concerning data centers, as the existing zoning ordinance currently offers no suitable locations for such facilities. This action follows a six-month moratorium enacted by the East Lansing City Council in March, which is set to expire in September. The workgroup, comprising representatives from the Planning Department, Department of Public Works, Commission on the Environment, and Planning Commission, will meet bi-weekly. Principal Planner Landon Bartley noted that while residents have voiced significant concerns, particularly regarding hyperscale data centers, there are currently only about eight parcels in the city's two industrial zones where light industrial uses are permitted, making data center placement effectively impossible under present rules. Staff documents highlight various policy considerations, including integrating quality of life impacts into zoning, requiring property tax guarantees from developers, and exploring synergies with existing industrial infrastructure. Major environmental concerns include significant electricity and water usage, air pollution risks, impacts on natural features, and noise. Bartley also mentioned that data centers contribute to rising utility costs in some cities, noting that nearly half of Michigan census tracts already face energy burdens, spending 10% of their income on energy. Despite the challenges, Michigan's abundant water supply, infrastructure, and tax incentives, which waive the state's 6% sales and use tax on data center construction and equipment, attract developers. Data centers are also seen as potential economic boons, boosting local tax bases and creating jobs in underutilized areas. Bartley anticipates presenting the workgroup's recommendations to the City Council by its July 21 meeting, ahead of the moratorium's September deadline.