MASON, Mich — Mason city leaders are working to establish comprehensive rules for data centers as artificial intelligence development drives demand for these facilities across Michigan.
- Mason is creating rules for data centers as AI demand grows.
- Experts say electricity rates won't increase for residents.
- City can regulate placement and standards but can't ban data centers.
The city is currently gathering public feedback before finalizing an ordinance that would regulate where data centers can be built and what standards they must meet. Last week, Mason began drafting these regulations, and now officials are addressing community concerns about potential impacts.
WATCH BELOW: Data centers could be coming to Mason as city finalizes regulations
"We want to mitigate the concerns that people have with them and the real issues that can come with them," Mayor Russ Whipple said.
As the AI buildout develops, data centers are increasingly needed for running computer applications, delivering online services and supporting cloud computing. However, these facilities require large amounts of electricity and significant water resources for cooling systems.
"We're very aware of and very sensitive to the concerns that people have for the impacts that these things could cause," Whipple said. "That's why we're trying to do a water study, and we've changed the lighting standards, and we have a noise limit."
Local residents have expressed concerns about potential costs associated with data centers. However, Matt Johnson from Consumers Energy said electricity rates should not increase for existing customers.
"As it relates to rates, we are very confident that those data centers developing and moving into Michigan will not impact customer rates," Johnson said.
Johnson explained that adding large customers actually helps reduce costs for other residents.
"When we have those large customers come on board, the cost of electricity is more widely dispersed around more people," Johnson said.
City Council passed an updated ordinance Monday following their latest public feedback session. The new requirements mandate specific height restrictions, noise limits and other standards for data center development.
The ordinance now moves to the Planning Commission before returning to City Council the following week for final approval.
Whipple emphasized that while the city cannot prohibit data centers entirely, officials can control their placement and development standards.
"We can't outlaw data centers. That's just not allowed. It's a violation of people's property rights to say hey, you can't do this here," Whipple said. "But what we can do is tell you where it goes and what standards have to be used to develop it and that's what we want to do."
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