Overview:
- Michigan Attorney General Dana Nessel challenges new state regulations on data centers powered by Consumers Energy, says they're inadequate.
- Early construction is underway at the planned Stargate data center in Saline Township, although the projects awaits state regulatory approval and building permits before full construction begins.
- Oracle is pushing back the completion dates for some OpenAI data centers from 2027 to 2028.
Welcome to a new weekly roundup of the data center news from around Michigan that we’re reading at Planet Detroit.
🔌 Lyon Township data center project rivals OpenAI’s Stargate in size Verrus, a project of Sidewalk Infrastructure Partners, plans to build a 1.8 million-square-foot hyperscale data center complex in Oakland County’s Lyon Township. Google parent company Alphabet is an investor and partner in Sidewalk Infrastructure Partners. The six-building project, called Project Flex, is to be developed by Walbridge on a 172-acre site. Lyon Township’s planning commission conditionally approved the plan in September, though a required sound study hasn’t been submitted. The developers said the facility will use significantly less water than typical data centers and features technology to manage power grid overloads. 📌 Source: Crain’s Detroit Business
🔌 Nessel clashes with Consumers Energy over data center regulations Michigan Attorney General Dana Nessel is challenging Michigan Public Service Commission rules on data centers powered by Consumers Energy, calling them inadequate for protecting ratepayers. She’s seeking stricter regulations including longer contract terms and higher renewable energy requirements. Consumers Energy opposes the petition, arguing existing rules protect customers while allowing economic growth. The utility said data center funding could upgrade infrastructure without raising rates. Environmental groups and local communities are also raising concerns about water use, pollution, and electricity costs from proposed facilities. 📌 Source: WWMT-TV
🔌 Preliminary work begins at Michigan’s first hyperscale AI data center Early construction work has begun at the proposed Stargate data center site in Saline Township, causing complaints from neighboring residents. Kathryn Haushalter reports gravel trucks on back roads, DTE trucks blocking lanes, and constant backup alarm noise. A court settlement requires construction traffic to use Michigan Avenue/U.S. 12 and avoid unpaved roads. Township officials are addressing concerns while the project awaits state regulatory approvals and building permits before full construction can proceed. 📌 Source: MLive
🔌 Mason Planning Commission reverses course, approves data center zoning despite opposition Mason Planning Commission approved amended zoning ordinances to proactively regulate potential future data centers, despite no current proposals for the city. Commissioners initially rejected the measure during a public hearing, then reversed their decision after many opponents left. Mayor Russell Whipple said the ordinance establishes protective standards for noise, water use, and building requirements. Residents voiced concerns about environmental and health impacts. The recommendation advances to Mason City Council, which meets Monday. 📌 Source: WKAR
🔌 Oracle pushes back OpenAI data center completion dates to 2028 Oracle has delayed completion dates for some OpenAI data centers from 2027 to 2028, citing labor and material shortages. The delays affect Oracle’s $300 billion contract to supply computing power for OpenAI’s AI models. One such facility under development is in Saline Township. Oracle’s Texas data center remains on track with over 96,000 Nvidia chips delivered. Oracle shares fell as much as 6.5% following the news. Even with the delays to 2028, the timelines are ambitious for these massive projects, the report said. 📌 Source: Bloomberg
🔌 University of Michigan data center grant costs $6 million per job Michigan expanded data center tax exemptions in 2024 despite failed job creation promises. Switch’s Grand Rapids facility created only 26 jobs by 2022 despite promising 1,000, yet kept exemptions worth millions. The University of Michigan-Los Alamos data center received a $100 million grant, costing $6 million per promised job versus $63,000 per job for other projects. Community organizers in Ypsilanti, Augusta Township, and Southeast Michigan are resisting projects as evidence mounts that job promises rarely materialize. 📌 Source: Tech Policy Press
🔌 Lowell Township reschedules data center hearing to high school after massive turnout A public hearing on a proposed data center in Lowell Township was postponed Monday after attendance exceeded the township hall’s 121-person capacity. The fire marshal raised safety concerns as crowds spilled into hallways. Planning Commission Chair David Simmonds rescheduled the hearing for January at Lowell High School. Residents expressed concerns about water rates, energy, and environmental impacts. Officials say the data center could generate millions in property taxes and represent a $500 million to $1 billion investment. 📌 Source: FOX 17
🔌 Microsoft seeks rezoning approval for data center on former Steelcase property Microsoft is requesting Gaines Township rezone 40.5 acres at 7147 Patterson Avenue from development-large scale plan to light industrial for a data center. Microsoft purchased 316 acres from Steelcase in 2024 for $45.3 million. The Gaines Charter Township Planning Commission will hold a public hearing December 18. Microsoft also bought property in Dorr Township for $48 million. The company says construction timelines haven’t been finalized. 📌 Source: WOOD TV
Editor’s note: This story has been updated to clarify that a Lyon Township data center proposal is by Verrus, a subsidiary of Sidewalk Infrastructure Partners. Alphabet is an investor and partner in Sidewalk Infrastructure Partners.