Deep Green data center in Lansing postponed by ‘procedural issue’

LANSING, Mich. (WLNS) — The vote to approve rezoning for a planned data center in downtown Lansing has been postponed as the project’s United Kingdom-based developer, Deep Green, works to address a “procedural issue” in its application.

The 24-megawatt, $120 million data center would be located at the corner of Kalamazoo Street and Cedar Street in the Stadium District, on land currently used for city parking. Deep Green has said the facility would “offer computing power for local clients looking to innovate.”

City Council President Peter Spadafore said Friday that the final votes on the project will not happen on Feb. 23, which will “allow the incorporation of feedback of constituents and fellow members of the Council.”

Deep Green echoed Spadafore, saying it will address a “procedural issue” in its rezoning request and reapply for a conditional rezone after hearing from the city council and city residents.

“We have been clear from day one that Deep Green is committed to doing things differently,” said CEO Mark Lee. “We also understand that trust is earned, not assumed. That’s why we are taking additional steps to formally guarantee the commitments we’ve made to this community.”

The developer did not specify exactly what the “procedural issue” in question was in its statement, but Lansing Mayor Andy Schor says the company is working amend its contract with the Lansing Board of Water and Light and the sale agreement with the city to “ensure that the promises made are written into the contracts.”

“As a result, we will put the contract back on file for 30 days for public view. Additionally, we will be resubmitting the rezoning to satisfy a question raised by a councilmember,” said Schor.

Deep Green says its new application will include:

• A $1 million return on equity payment to the City of Lansing

• A closed-loop cooling system intended to minimize water use to that of around 15 homes or a small restaurant

• Upfront payment of all required energy infrastructure costs

• Payment of applicable standard published rates

• Compliance with downtown zoning noise limits

• Building aesthetics that conform to the surrounding community

“This project is unique and is being watched across the country as a better way to do data centers,” said Schor. “Closed loop cooling, heat capture to prevent rate increases, the company paying for infrastructure, urban infill with positive aesthetics, complying with noise ordinance, and all with no request to the city for a tax incentive. This will provide needed dollars for city services, create jobs in Lansing, and have no major impact on neighborhoods.”

The data center project has been controversial since it was originally proposed in November. The company has promised the data center will be ultra-efficient, reusing waste heat through BWL’s hot water system and minimizing water use.

Additionally, under the proposal, Deep Green would pay for infrastructure upgrades to support the electricity it would use, which they have said would ensure the data center wouldn’t burden the grid — or raise rates for other customers.

However, some residents have expressed worry about the impact the data center could have on the local power grid and water supply, with protesters gathering outside City Hall on Monday as officials and residents discussed the project at the city council meeting inside.

“I look forward to the city council’s consideration of the amended proposal in the coming months,” said Schor.

Deep Green’s redrafted conditional rezoning application will be reconsidered at the March 3 Planning Commission meeting.

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