LANSING, Mich — More than two months after a proposed downtown Lansing data center fell apart, Lansing City Council is again talking about data centers but this time in the form of a potential moratorium.
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On April 6, U.K.-based tech company Deep Green pulled its plans to build a data center in Lansing.
Seventy-seven days later, the issue resurfaced on Monday's city council agenda focused on whether the city should pause future data center development while leaders consider next steps.
Tim Daman, president and CEO of the Lansing Regional Chamber of Commerce, called the lost project a major setback for Lansing and the region.
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“It’s a 100% missed opportunity for our city, our region and our state,” Daman said.
Daman said he worries even discussing a moratorium sends a message to businesses that Lansing is not open to investment.
“Anytime a moratorium is put in place, that’s essentially a close sign,” he said.
Daman argued data centers are a key part of the modern economy and should be viewed as essential infrastructure, similar to how roads and railroads once shaped where communities grew.
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“We all live with our world in front of us on our phones,” Daman said. “It is driving that. It’s going to continue to drive business. AI is part of that, but it’s also in advanced manufacturing, it’s in research.”
Residents pushed back in the weeks leading up to Deep Green’s decision to pull out, raising concerns about utility costs and environmental impacts tied to large-scale data centers.
The Lansing Board of Water & Light, which supported the Deep Green proposal, said in a statement that it “follows the city’s direction and any established ordinances.”
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Daman said the bigger concern is what a moratorium could signal to companies considering Lansing for future projects.
“They see that, we may never know the opportunities we’ll miss,” he said.
City council voted to set a date for a public meeting on the proposed data center moratorium. That meeting is scheduled for Monday, July 13 at 7 p.m.
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