Ypsilanti Township eyes moratorium on power transmission to slow U-M data center

Ypsilanti Township is considering a six-month pause on massive electricity transmission associated with data centers
The vote, planned for Tuesday, comes after the University of Michigan said it would move ahead with a $1.2 billion private data center
The move follows a year-long moratorium on water and sewage approvals in eastern Washtenaw County

Ypsilanti Township has a new tactic to fight the University of Michigan’s proposed $1.2 billion private data center — a six-month delay to evaluate whether local infrastructure can handle the facility’s power needs.

One week after U-M announced it finalized the site of the collaborative project with Los Alamos National Laboratory, the township on Tuesday will consider the moratorium and whether its infrastructure rules are sufficient.

The U-M proposal includes a DTE substation that would generate enough power for 80,000 homes. That may require new transmission line corridors, expanded utility easements and transmission towers, among other changes.

Their scale — like Michigan is seeing amid two dozen proposals for hyperscale data centers — is far beyond what is typical for a single development.

“We need to examine the impact that these substations are going to have upon the environment, especially when they’re going to build these gigantic monstrosities,” Doug Winters, Ypsilanti Township attorney, told Bridge Michigan.

“What they’re building is already going to produce more energy than what the rest of the township is using right now.”

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The moratorium proposal is the latest roadblock from the township in its year-long fight with the proposal.

In April, the Ypsilanti Community Utilities Authority enacted a one-year moratorium tied to water and sewage use for the U-M facility and another data center (since paused) in nearby Augusta Township.

Township officials contend U-M has not been transparent about its plans for the facility, which will support academic projects, national security and nuclear weapons research. While the center won’t make nuclear weapons, township officials say it could make the community a target.

They also have concerns about the project’s impact on the environment and nearby residents and whether one of the nation’s richest universities should build the facility in a lower-income community.

The university and boosters including the Detroit Regional Chamber say the project will elevate the region’s prestige, create 200 high-paying jobs and produce spillover businesses.

The Michigan Economic Development Corp. has pledged $100 million to site preparation for the project.

The facility “will give scientists the computing power needed to solve the world’s most complex challenges,” the university said last week when it finalized its decision to build at its property in the township on Textile Road.

University spokesperson Chris Sebastian said the university had no comment on the latest moratorium initiative.

DTE spokesperson Ryan Lowry said the utility is obligated to provide “safe and reliable service” to all residents and businesses in the township.

“Our team is reviewing the proposed moratorium, and we are committed to working closely with township officials and the University of Michigan as discussions continue,” Lowry said.

Winters described the additional scrutiny as “another tool that we’re going to use” to protect the township’s 56,000 residents.

“The township has a say-so” on how power transmission will reach U-M’s data center, Winters said. “We have certain areas that we can weigh in on. We’re going to take advantage of that.”

According to the resolution, “existing regulations do not comprehensively address the land-use impacts associated with the construction or substantial expansion of modern high-capacity electrical substations, switching stations, transformer yards, transmission facilities, and related major electrical infrastructure.”

Among the areas that will be scrutinized if the board approves the moratorium are “impacts related to location” such as how much land is used, screening, noise, and lighting.

Also possible considerations could involve emergency access, proximity to residential neighborhoods and public open spaces and construction activity, as well as compatibility with existing and planned development.

The township’s initiative is not meant to address electrical rates or issues involving the data center that may come before the Michigan Public Service Commission, Winters said.

U-M plans a community town hall on the proposal on Sept. 9 at the Ann Arbor Marriott Ypsilanti at Eagle Crest. Details are pending.