Detroit may soon join a growing number of Michigan communities hoping to place restrictions on data centers before construction even begins. At their meeting on March 17, the Detroit City Council approved a resolution asking Mayor Mary Sheffield to not issue any data center permits for two years so the city can do more research into the potential environmental and economic impacts.
As proposals for AI data centers are on the rise, so are similar moratoriums across the state. At least 10 Michigan communities are the site of potential hyperscale data centers. In 2024, Michigan passed a tax break for data centers through at least 2050, hoping to incentivize developers.
The resolution passed 6-2 with one member, Angela Whitfield-Calloway, absent. Council President James Tate Jr. and President Pro Tem Coleman Young II voted against the resolution, citing concerns with the length of the proposed moratorium.
The effort to temporarily block data centers is led by Council Member Scott Benson. He said he is not necessarily against data centers, but wants to make sure Detroit is prepared for the potential in the future.
“What I want to do is ensure that we as a city provide protections and establish the rules of the road for data centers in any iteration,” he said. “And those are rules we don't currently have on the books now.”
Benson said other communities have had negative experiences regarding potential data centers. Proposed centers in Ypsilanti and Saline townships have highlighted the potential for friction between data center developers and local officials.
“What we have found is that municipalities that don't proactively protect themselves can often find themselves in a very poor position where their residents unwittingly, and the city unwittingly, have a corporate citizen who is not the best citizen and doesn't have the proper regulations,” Benson said.
Other members who supported the resolution raised concerns about residents not wanting data centers in their neighborhoods, in addition to concerns about potential environmental impacts and increased electricity costs.
Young, who opposed the resolution, said modern technology should be able to speed up the process. He said that he recognizes the potential concerns with data centers, but dedicating two years to researching impacts is excessive.
“I just don't think we need two years. I got apps for that. You know what I mean? You can go on ChatGPT and figure out this information in two minutes. So, I don't think we need two years to be able to research what this is,” he said.
In an email to Michigan Public, John Roach, spokesperson for Sheffield’s office, said she will consider the resolution.
"The mayor is aware of the data center moratorium resolution passed yesterday by city council. Upon receipt of an official copy and out of respect for her governing partners, she will fully vet the request and make a decision that is in the best interest of Detroiters and the future of our city."
