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

LANSING, Mich. (WLNS) — The vote to approve the rezoning of a data center planned for downtown Lansing was postponed as development of the UK-based projectby, Deep Green, is working to resolve a “procedural issue” in its application.

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

Peter Spadafore, City Council President said Friday that final votes on the project will not take place on February 23, which “will allow for the incorporation of comments from constituents and other Council members.”

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

“We have made it 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. This is why we are taking additional steps to formally guarantee the commitments we have made to this community.”

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

“As a result, we will place the contract back on file for 30 days to make it public. Additionally, we will resubmit the rezoning to address a question raised by a council member,” Schor said.

Deep Green says its new app will include:

• A Million Dollar Return on Equity to the City of Lansing

• A closed-loop cooling system designed to minimize water consumption to that of around fifteen homes or a small restaurant

• Upfront payment of all required energy infrastructure costs

• Payment of applicable published standard rates

• Compliance with downtown zoning noise limits

• Aesthetics of the building consistent with the surrounding community

“This project is unique and is being seen across the country as a better way to create data centers,” Schor said. “Closed-loop cooling, heat capture to avoid rate increases, company pays for infrastructure, urban infill with positive aesthetics, compliance with the noise ordinance, and all without asking the city for a tax incentive. This will provide needed funds for city services, create jobs in Lansing, and will not have a major impact on neighborhoods.”

The data center project was controversialial since its initial proposal in November. The company promised the data center will be ultra-efficient, reusing waste heat via BWL’s hot water system and minimizing water consumption.

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

However, some residents have expressed concern about the impact the data center could have on the local power grid and water supply, with Protesters gather in front of city hall 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,” Schor said.

Deep Green’s restated conditional rezoning request will be revisited at the March 3 planning commission meeting.

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