Deep Green Pulls Lansing Data Center Proposal Hours Before City Council Vote

Deep Green Withdraws Application for Downtown Lansing Data Center

A UK-based developer pulled its proposal to build a small-scale data center in downtown Lansing hours before the city council was set to vote on the project, ending months of debate over the proposed facility.

On Monday afternoon, Deep Green formally withdrew its request to rezone a parcel of city land between Cedar and Larch streets to build a 24-megawatt data center and a 16-megawatt fuel cell facility to supply power to the project. As a result, the Lansing City Council will not vote on the project at its Monday evening meeting, and the project will not move forward in Lansing.

"In a post to Facebook Monday afternoon, Peter Spadafore, the council member for the city's 4th ward, shared that Deep Green had formally withdrawn its proposal to rezone a parcel of land between Cedar and Larch streets to build a 24-megawatt data center," Yahoo News reported.

Josh Hovey, a spokesperson for Deep Green, confirmed that the company's leadership had withdrawn its request for rezoning. The company did not provide an explanation for the decision but did not rule out building a data center elsewhere within the state.

"We are confident that Michigan is a place that values responsible development, and we continue to work with local partners and communities in the region," Deep Green's statement reads.

Mayor Schor Had Previously Supported the Project

Deep Green announced the project in November alongside Lansing's municipal energy and water provider, the Board of Water and Light (BWL). The UK-based company pitched the project as a "different kind of data center" intending to reuse heat from its equipment in the Board of Water and Light's downtown heating loop, which the BWL is transitioning from steam heat to hot water.

Lansing Mayor Andy Schor had released a letter expressing support for the project, calling it a "sensible, responsible project" that would bring Lansing revenue. Schor addressed common criticisms levied toward proposed data centers, claiming the facility would not use an excessive amount of water and that electric rates would not increase.

"The last time they talked to us, they pushed most of those concerns off after the rezoning, which just can't happen, because once rezoning and construction begins, the people have no say in what actually happens," said Prayag Shankar, a Michigan State University student during a February city council meeting.

Environmental and Economic Promises Met With Skepticism

Many residents expressed skepticism about the project's environmental and economic promises, including the company's plan to construct a fuel cell facility alongside the data center. While the fuel cell plant would have produced 60 to 70 percent of the emissions emitted by a traditional natural gas plant, it would still emit carbon dioxide, the primary greenhouse gas driving climate change.

The project would have brought several potential benefits to the community. Dick Peffley, the Board of Water and Light's general manager, noted that Deep Green promised to donate $120,000 annually to the utility's pennies for power program, which provides one-time utility shutoff protections for low-income customers.

"In a statement, Dick Peffley referred project specific questions to Deep Green, but said the company still believes the project would have brought several benefits to the community," Yahoo News reported.

What This Means for Lansing

The withdrawal of the Deep Green proposal ends a contentious debate that had divided residents, city officials, and local businesses. The data center would have been the second major proposal for a data center in Lansing, following controversy around another developer's project that also faced opposition from community members.

The city now faces questions about what alternatives might fill the gap, and whether future data center proposals will face similar skepticism from residents who worry about the environmental and economic impacts of such facilities in their neighborhoods.

The Lansing City Council will not discuss the Deep Green proposal at its Monday meeting since the application has been withdrawn. However, the issue of data centers in Lansing remains a topic of discussion among city officials and residents alike.