Saline Township near Ann Arbor has approved a tax break for a massive data center project — though it's a much smaller tax break than what one of the companies behind the project proposed.
Related Digital is developing the hyperscale AI data center. Leaders broke ground on the project last month.
The Saline Township board initially voted to deny rezoning farmland for the facility. But Related Digital sued, claiming the decision violated the Michigan Constitution's ban on exclusionary zoning. Local governments are not allowed to totally ban a lawful and economically viable land use if the land exists and there is a “demonstrated need” for it.
The township and the developer quickly settled. As part of the consent agreement, the township was required to green‑light the project in exchange for a pledge from Related Digital to invest $10 million in the township, protect area water resources, and create a decommissioning fund.
The township was also required to approve the data center’s Industrial Facilities Exemption Certificate — which contained the tax abatement approved at a Tuesday meeting.
Local residents spoke out against the tax break at a township board meeting last week.
“Billionaires and greedy politicians are never going to be satisfied,” said Saline resident Tim Bruneau. “They will continue to ask for more and more, when they don't get it, they sue."
Oracle initially sought a 12-year, 50% abatement on real and personal property taxes based on a recent $43 billion valuation the company offered for the project. However, the township ultimately used a much lower $4.8 billion valuation mentioned in the lawsuit settlement. That decision resulted in a smaller tax break, which will leave more revenue for the township.
The board also approved a “clawback” provision that lets governments and taxing authorities demand repayment of tax breaks if the project doesn’t meet certain conditions, such as failing to complete promised site improvements.
Kurt Smith, a Berlin Township resident and anti-data center activist, said he was concerned about the potential environmental impacts of the data center.
“I have to ask what thought — if any — was given to your wildlife in this, and also that's rhetorical, because I know the answer was none,” Smith said. “Better yet, where's their tax abatement," he asked, referring to local fauna. "Unfortunately, we all know that that's not the way that this works.”
Township officials said there are regulations in place to mitigate environmental impacts.
