Michigan Communities Push Back Against Data Centers as State Lawmakers Consider Moratorium and Tax Repeal

Residents across Michigan are rallying this weekend to oppose data center projects while state lawmakers consider legislation that would repeal tax breaks for the facilities and institute a one-year moratorium on new developments.

Rallies planned in Detroit, Ann Arbor, and four other Michigan cities connect grassroots opposition to a ballot initiative that would ban political donations from monopoly utilities. Organizers say the effort crosses party lines.

State Rep. James DeSana, a Monroe County Republican scheduled to speak at the Ann Arbor rally, said his constituents oppose data centers by a wide margin that crosses party lines.

"They're concerned the projects will occupy agricultural land, use large amounts of electricity and water, and create noise and vibration," he said.

DeSana is among the lawmakers supporting the Michiganders for Money Out of Politics ballot initiative, arguing that political spending was behind the passage of Michigan's data center tax breaks in 2024.

"The reason that these big, gigantic corporations are getting tax breaks is because money in politics got the bills passed," he said.

Wendy Albers, an Augusta Township resident helping organize Saturday's rally in Ann Arbor, said Michiganders will be hit twice by data centers - supporting wealthy companies with state tax breaks while paying bigger utility bills.

"I think politics are for the people and we should not have big corporations paying to influence our politicians," she said.

A ballot initiative to ban political donations from monopoly utilities has 81 percent support among Michigan voters, according to a recent poll.

The state legislature is considering proposed legislation to repeal data center tax breaks and institute a one-year moratorium. Local township boards are making zoning decisions for individual projects.

Delta County Planning Commission approved a moratorium draft during a meeting on Monday that would pause data center or cryptocurrency mining projects for up to 12 months until a zoning ordinance is in place.

Commission Chair Amy Berglund said the pause would help develop an ordinance that makes sense for the townships they have responsibility for.

During public comment, an Escanaba Township resident said data centers would add tremendously to the community financially through tax bases. Another resident questioned whether the county's labor shortage would allow them to fill those jobs without bringing people in from outside the community during a housing shortage.

The commission moved the proposed moratorium to legal counsel for review and to clarify coverage, since the Commission is in charge of zoning for nine townships.

Meanwhile, Deep Green has withdrawn its proposal to build a $120 million data center in downtown Lansing on the site of two seldom-used municipal parking lots.

Lansing City Council President Peter Spadafore announced the withdrawal Monday afternoon after receiving notice from leadership at Deep Green, a United Kingdom-based company behind the proposal. The company is withdrawing its application for a zoning amendment that would have made the project possible.

The city council was scheduled to vote whether to approve the re-zoning at Monday night's meeting. Those votes have now been canceled.

Deep Green CEO Mark Lee released a statement regarding the withdrawal saying their commitment to building data centers the right way has never been stronger. He added they are confident Michigan is a place that values responsible development.

Lansing Mayor Andy Schor said he appreciated Deep Green's efforts to address concerns through formal, written responses and legally binding commitments. The project was planned for the area of E. Kalamazoo Street and S. Cedar Street.

"The withdrawal of this $120 million Deep Green data center development from the City of Lansing is a deeply disappointing outcome for our community," Tim Daman, President and CEO of the Lansing Regional Chamber of Commerce, said. "Lansing cannot expect improved services, expanded opportunities, and long-term growth while turning away the very investments that make those outcomes possible."

The data center project was originally touted as the "first of its kind" in the United States, with plans to generate free heat to be used by the Lansing Board of Water and Light's steam and future hot water utility.

Residents have pushed back on the project in the months since, while Schor publicly supported the plan in a letter last week. The property remaining is two seldom-used municipal parking lots.

Schor said he is asking all those who suggested housing on these parcels to provide their proposals for development into housing. He said he looks forward to seeing those proposals and financing to make this happen.

BWL General Manager Dick Peffley released a statement saying the Lansing Board of Water and Light understands Deep Green has made the decision to withdraw their proposals for both the purchase and the rezoning of the property. The utility believes in the benefits this project would bring to the City of Lansing and their customers, including benefit to future hot water customers and related emissions reductions, as well as the annual $120,000 donation to Pennies for Power to help customers who are struggling.

The projects have encountered intense opposition in many Michigan communities, with residents arguing data centers could increase their utility bills and undermine state climate goals. The facilities' power demands could trigger an "off ramp" provision in Michigan's climate law, allowing fossil fuel generation to stay online if there's a capacity shortage.

Augusta Township voters will decide on rezoning land for a $1-billion data center project in August, and the MMOP ballot initiative could appear on the November ballot if it gathers enough signatures.

Sources:

• Planet Detroit - https://planetdetroit.org/2026/04/michigan-anti-data-center-rallies/
• Upper Michigan Source - https://www.uppermichigansource.com/2026/04/07/delta-county-planning-commission-approves-data-center-moratorium-draft/
• WILX - https://www.wilx.com/2026/04/06/company-behind-downtown-lansing-data-center-project-withdraws-application-city-council-president-says/