The City Planning Commission is drafting a proposal to govern data center developments in Detroit.
The commission got to work on the proposal following a series of meetings of a cross-sector data center working group convened by City Councilman Scott Benson.
“We’re off and running,” Benson told BridgeDetroit of his plan to have the data center zoning policy approved by Detroit’s City Council by Dec. 31. “This is the top priority of the planning commission right now.”
As the policy effort gets underway, city planning and building officials are also working to determine what types of small-scale facilities are already operating in Detroit.
Erma Leaphart, a retired conservation organizer for the Sierra Club Michigan Chapter, noted during the workgroup’s last meeting that members are “learning that data centers already exist in Detroit.”
Leaphart, who heads the workgroup’s public health and environmental impact subcommittee, added that understanding how many there are, the amount of energy and water they use as well as noise and other impacts from those operations “would be important,” according to minutes from the June 12 meeting provided to BridgeDetroit.
City Planning Commission Director Marcell Todd said while some facilities already function as data centers, Detroit is not currently positioned to accommodate hyperscale developments.
“Yes, there are data centers in the city, as it is a relatively new term and data centers can be equated with DTE or ATT switching/substations and businesses and large corporations (that) have computer processing centers within their facilities,” he told Bridge in a text message. “What we don’t have are these scale facilities (hyperscale) that are causing concerns around the nation.”
Leaphart asked whether there was a list of data center facilities already operating in Detroit. Todd said during the meeting that CPC was waiting for the information. The city’s Buildings,
Safety Engineering, and Environmental Department, he said, might be able to identify permitted facilities operating as data centers. Still, it’s challenging since older utility structures, substations, and telecommunications sites have likely been classified differently or grandfathered in. As of July 2, that list still wasn’t definitive, Todd confirmed.
Todd said that the city needs to know what exists in order to set appropriate thresholds, but it also needs a definition to determine what should be counted.
Leaphart also suggested that the city may need to consider limits based on the number and type of facilities already operating, rather than evaluating each proposed facility in isolation.
Benson said CPC is reviewing ordinances from around the country to see what fits. The draft will incorporate a definition of data centers and various tiers of those developments, he said.
The working group first met in April, and one thing members quickly agreed on, Benson said, is that hyperscale data centers are not for the City of Detroit.
He said there isn’t a will politically; residents have no appetite for it, the city doesn’t have the land available, and DTE Energy doesn’t have the capacity.
“To me, that’s a big sigh of relief,” he said. “The biggest area of concern for people is hyperscale (data centers). The energy use and water use is so massive. They need too much space and too much energy and we don’t have the ability to give them that.”
A Detroit advocacy group recently raised concerns about the makeup and meeting structure of Benson’s working group, arguing it wasn’t inclusive and lacks transparency.
Organizers for the Detroit People’s Platform have argued to council members that without more accountability there’s a risk that decisions could be made without proper input. DPP members who have been vocal about their issues with the process could not be reached for comment.
Benson told BridgeDetroit in a July 1 interview that he believes that the process thus far has been “transparent and welcoming.” The first meeting had about 40 attendees, he noted.
“I’m not sure how much more public you can get when you’re trying to actually get policy done,” he said. “I highly respect the people leading these subcommittees who are charged with going out to the community to give feedback and information.
“Unfortunately, you can’t please everybody,” he added. “My door is always open.”
The workgroup’s first virtual meeting, attended by BridgeDetroit, included representatives from environmental groups, DTE Energy, the city’s planning commission, building and safety offices, health and water departments and the council and mayor’s administration, the Detroit Economic Development Corporation as well as unions and tech officials. So far, the full workgroup has met twice, and its four committees have also met twice. Benson said the planning commission began drafting the policy after the June 12 meeting.
Benson’s push aligns with strategies being pursued in multiple Michigan municipalities to set parameters for data centers. The hyperscale data centers have been proposed for close to a dozen Michigan counties. Some have secured key approvals; others have faced pushback from residents and legislators. Late in 2024, Michigan lawmakers narrowly approved tax breaks to lure the industry to the state.
The workgroup came together after the City Council in March passed a resolution urging Mayor Mary Sheffield to establish a two-year moratorium on data center development in the city.
The mayor has not yet made a determination on the moratorium request, her spokesman John Roach said on July 1. Benson reiterated that numerous members of Sheffield’s administration have participated in workgroup discussions and said that they won’t support anything that negatively impacts the environment or air quality for residents.
Benson said the ordinance being written by the planning commission will include public hearings and a community engagement process. He urged residents to “get involved now” that the policy work is in the hands of the planning commission.
“That’s where the policy is written,” he said. “People said they want to come to my working group. The question is why, when they can go to the planning commission, they are writing the actual policy.”
Separately, residents on Detroit’s east side have convened discussions on ways to slow the development or minimize the potential harm associated with data centers to city neighborhoods already overburdened with industry. That study group, led by the Eastside Community Network, is working to educate east side residents on the economic, environmental, and health impacts of the facilities.
ECN staff confirmed July 2 that its resident-only group just held the first of what will be biweekly Wednesday meetings. The group hopes to have a report by the end of summer or early fall on what it believes is best for their neighborhood regarding data centers.
For the city’s part, Todd said CPC will likely have a status report with draft language by the end of the month.
hello iam a resdent of detroit and iam concerned about these data centers that is going up around us i have heard thing that is not good for the neighborhood for instance i heard that these centers are cause utility rates to skyrocket can you give me more information on that ,,thanks