Data center news: Saline Township reverses course, drops cap on data center tax break

Here’s a roundup of data center news we’re watching at Planet Detroit as we cover the environmental and financial impacts of the developments in Michigan communities.

➡️ Saline Township board reverses course, drops cap on Oracle data center tax break Saline Township’s board voted 5-0 to remove a $4.8-billion valuation cap from its tax abatement approval for “The Barn,” the $43 billion Oracle and OpenAI data center. The township’s attorney warned that capping the valuation would violate a 2025 consent judgment settling an earlier lawsuit, risking damages and legal costs. The reversal follows community backlash, with some residents feeling betrayed while others supported prioritizing legal compliance. A “claw back” provision requiring repayment if conditions aren’t met remains in effect. 📌 Source: MLive

➡️ Developer says data centers treated unfairly as Wixom rejects waiver Wixom City Council unanimously rejected a request to lift the city’s data center moratorium, which has been in place since March and remains effective until August. Developers Wixom Industrial One and Sansone Group sought approval for a three-building, 519,000-square-foot facility on 55 acres. The council called the waiver request “unreasonable” given health, safety, and welfare concerns. A vote on new data center rules was postponed. 📌 Source: Data Centre Dynamics

➡️ Lyon Township data center nears final vote, residents remain skeptical Verrus is seeking final approval for Project Flex, a data center on Milford Road in Lyon Township, with review set for the Planning Commission’s Aug. 24 meeting. Developers submitted a fourth application this week, offering a $10-million community benefits package plus commitments on water usage, noise, and lighting. Residents like Nancy Hopkins remain unconvinced, citing transparency concerns and calling the package inadequate compared to its community impact. Some warn of potential litigation if the township rejects the project. 📌 Source: WXYZ-TV

➡️ Lenox Township tables development district review The Lenox Township board voted 3-2 to table a planning commission recommendation to seek independent specialists to review a development district along I-94 amid data center rumors in the Macomb County community. Four of five trustees face recall petitions. Suspicions have grown from resident land offers, FOIA-obtained emails showing developer-official correspondence, and an anonymous promotional website. Officials have denied a data center is planned but declined further comment; residents plan more recall efforts. 📌 Source: MLive

➡️ Data center backlash unites voters across party lines, rattles Michigan politicians Opposition to AI data centers is uniting voters across party lines nationally, with only 14% supporting one in their community, per Reuters/Ipsos polling. Saline Township’s “The Barn” project exemplifies the fight—residents cite water, power grid, and farmland concerns after officials settled a developer lawsuit via consent judgment. The backlash is reshaping Michigan’s Senate primary, splitting Democrats Haley Stevens and Abdul El-Sayed on AI oversight, while the Trump administration is working on a voluntary pledge to protect taxpayers from AI expansion costs. 📌 Source: Reuters

➡️ Ypsilanti Township residents pack meeting to oppose U-M, Los Alamos project Ypsilanti Township residents and officials voiced strong opposition to a proposed $1.25-billion research computing center from the University of Michigan and Los Alamos National Laboratory at an informational meeting with a final site decision expected within weeks. Township attorney Doug Winters bluntly told the project to leave, while Supervisor Brenda Stumbo dismissed U-M’s “research center” framing, calling it a data center. Residents also fear the Los Alamos connection could make the community a target. U-M says it isn’t a commercial data center and won’t house weapons or nuclear materials. 📌 Source: WXYZ-TV

➡️ Data centers dog Benson’s affordability tour as rivals seize on husband’s ties Michigan gubernatorial candidate Jocelyn Benson faces repeated questions about data centers during her affordability tour, particularly her husband’s role at The Related Companies, which is developing Saline Township’s data center project. Benson has proposed guardrails including public hearings and potential moratoriums for violators, insisting neither she nor her family profits from data centers. Rival Chris Swanson has needled her on the connection, while Republican Perry Johnson cited a disproven $70-million profit claim against her. 📌 Source: Bridge Michigan