“One that's pretty prominent right now is where a data center wants to build in an area that is not currently zoned in a way that would allow the center to be there.”
Attorney Ben Anema says developers must petition local governments for rezoning or Special Land Use permits - a multi-step legal process in which the Planning Commission holds a public hearing and the Township Board makes the final decision.
“State law prohibits local governments from just outright banning something that they don't like. That's referred to as ‘exclusionary zoning.’ A similar situation is the gravel pits in Michigan where some local governments were intent on just keeping them out of their area at all costs.”
Because hyperscale data centers are relatively new in Michigan, many townships are unprepared.
Anema notes townships can use temporary moratoriums to buy time, allowing them to consult with legal counsel and update zoning ordinances to address issues before a developer approaches.
“There are on top of that many other considerations such as: what is the public will and making sure that there are protections in place to ensure that water usage is appropriate for the community and things of that nature."
Residents have influence through contacting board members, public comment at meetings, or initiating a referendum under the Michigan Zoning Enabling Act.
“If they circulate a petition and get a certain amount of signatures, then they can include that on a ballot which will be voted on by the community... So yes, local governments have a lot to deal with as a result of this explosion of data centers.”
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