LANSING, Mich — A proposed $120 million data center in downtown Lansing gained support from local labor and business leaders Monday as the project moves closer to clearing another regulatory hurdle.
- Deep Green, the company behind the proposed data center, held a round-table discussion with area leaders Monday, hours before a Lansing City Council public hearing on the project.
- The company's CEO says Lansing would be Deep Green's first U.S. location and hopes it can serve as a national model for other cities to follow.
- Lansing Board of Water & Light officials say customers shouldn't expect rate increases and that the project would save neighbors money in the long run.
WATCH: LANSING DATA CENTER GAINS SUPPORT FROM BUSINESS & LABOR LEADERS
The Deep Green data center would be built on parking lots along Kalamazoo Street between Larch and Cedar streets. The company is seeking city council approval for the land purchase and rezoning in order to move forward with construction.
"When we have opportunities like this to grow, it's incumbent upon all of us to come together to support that," said Tim Daman, president and CEO of the Lansing Regional Chamber of Commerce.
The facility would be what Deep Green CEO Mark Lee calls a "national first" as a heat reuse data center. The method involves capturing heat generated by computers at the site and distributing it to nearby buildings.
WATCH: MASON APPROVES DATA CENTER ORDINANCE DESPITE OPPOSITION
"Our entire strategy is to be ultra efficient, ultra compact. We build as small as we can but we need to be adjacent to the heat off-taker," said Lee.
Deep Green plans to power the building using fuel cells and generate two-thirds of its electricity on site.
In recent weeks, residents have opposed data centers over concerns about possible utility rate hikes and long-term environmental effects.
WATCH: ONEIDA TOWNSHIP PUTS SIX-MONTH HOLD ON DATA CENTER PROJECTS TO CRAFT GUIDELINES
However, Lansing Board of Water & Light CEO and General Manager Dick Peffley said rate hikes won't happen and the project would save money for neighbors long-term.
"The amount of steam and hot water that will come out of that facility will reduce our natural gas burn by 25%. That's about $1.1 million in savings," said Peffley.
In January, the Lansing City Council proposed an ordinance that would put 10% of what BWL makes from data centers back into housing.
WATCH: DATA CENTER OPPONENTS RALLY AT MICHIGAN CAPITOL AMID STATEWIDE EXPANSION CONCERNS
BWL said the project could net an extra $1 million for the city annually, which could potentially mean $100,000 per year for Lansing housing projects.
If city council votes to approve the land sale and rezoning, construction would begin in March.
Deep Green said it would create 50 construction and operations jobs, though company officials noted that number may end up being inflated.
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