Michigan data center plan dead two weeks after it was announced
Published in Business News
LANSING, Michigan — Less than two weeks after unveiling a data center community engagement process officials hoped would flip the script on the hotly contested developments, the project is dead.
The announcement of a possible data center in Delhi Township and Holt, on the south side of Lansing, by a local economic development agency was met with immediate opposition. The township ended its partnership with the economic development group the next day and had unanimously approved a resolution opposing the data center within three days of the announcement.
On Monday, Nov. 9, the Lansing Economic Area Partnership (LEAP) said the deal is no more.
Lighthouse Sustainability, the pre-development firm that intended to work with the community to address concerns about the $10 billion data center, withdrew its interest in the site. LEAP will now look to other "non-data center opportunities" for the site, said Bob Trezise, president and CEO of LEAP.
“While we are disappointed that a public dialogue was not truly allowed to begin, we thank the Delhi Township community and Lighthouse Sustainability for their participation and feedback, though brief,” Trezise said in a statement.
The project in Delhi Township was announced Oct. 27, six months into a one-year data center moratorium voted on by the township board.
LEAP announced the project without first consulting the board, partly to address concerns other communities had raised about local leaders receiving advance information under non-disclosure agreements. But the lack of advance communication with Delhi Township residents caused immediate upset.
"There is no data center proposal being considered or discussed," Delhi Township Manager Tracy Miller said in a statement Oct. 27. "Board members have not communicated with a data center developer and they have not, and will not, sign any non-disclosure agreements."
Lighthouse Sustainability said on Oct. 27 that it would work with community members over the next six months to develop a framework for what an acceptable data center, if any, would look like and use that to decide on an eventual end user. The community would decide whether to lift the moratorium next April.
The plan came at the same time, a little southwest of the planned 423-acre Delhi Township site, the Mason area community was fighting a hyperscale data center development planned for rural farmland.
The Delhi Township property, located between College Road and Cedar Street in Holt, is owned by DTN Development. LEAP has had an option on the parcel for several years and has received about $6.5 million in Strategic Site Readiness Program dollars from the state's economic development agency to help prepare it for future development.
When the Delhi Township site was announced, the property is currently designated as an "economic opportunity property" but would need to be rezoned to industrial. Consumers Energy is the electric provider for the area.
Lighthouse had pledged a roughly $20 million community benefits package and believes the new data center would increase the township's tax revenue from $23 million to $76 million.
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