Signature Associates

Metro Detroit communities scramble to regulate, restrict data centers

Posted By: Detroit Free Press on February 16, 2026.  For more information, please click here to read the source article.

As data center proposals crop up across Michigan, Metro Detroit communities are scrambling to impose moratoriums or tweak their zoning ordinances to regulate where they can, though some city attorneys said they’re limited in what they can do, and officials are walking a fine line to avoid legal battles.

In the Detroit region alone, at least five communities have imposed moratoriums in the last two months to give officials time to review their zoning ordinances and possibly amend them to limit where data centers can be located. Sterling Heights’ City Council passed a moratorium earlier this month, following Pontiac, Taylor, Northville and Springfield Township.

Other communities like Chesterfield Township and Washington Township haven’t passed moratoriums, but are each examining their zoning ordinances — detailed rules that define how property in specific geographic areas can be used, from industrial uses to residential.

Most of the communities imposing moratoriums have no proposals for data centers before them now, but said they’re taking preemptive steps.

When it comes to regulating data centers, zoning experts said local governments are limited in what they can do, but they do have some tools, such as imposing restrictions on the outward appearance of the buildings and noise limits. Noise was one concern Sterling Heights officials raised when imposing their moratorium.

But moratoriums can only last for so long, without potentially opening communities to lawsuits, said Nancy Olind, an attorney with the Royal Oak-based Kelly Firm who works with Michigan municipalities.

Robert Seibert, the township attorney for Washington and Chesterfield townships, said “very sparse” case law exists in Michigan that deals with moratoriums. Speaking during a recent Washington Township board meeting, he added that there is “nothing” in the Michigan Zoning Enabling Act that authorizes a moratorium.

“The general consensus is that a moratorium in limited circumstances may be enforceable, but it cannot come from this board,” Seibert said, referring to the Washington Township Board of Trustees.

But Sarah Mills, an urban planning professor at the University of Michigan and an Ann Arbor planning commission member, said the Zoning Enabling Act allows “sensible” moratoriums that ensure officials work to update a city code while they’re in place.

Municipalities generally can’t regulate water or electrical use at data centers because they don’t usually run these utilities as local public services, said Mills, who is a member of the Michigan Association of Planning. Because of these limitations, she recommended that local officials require the companies bringing the data center plans forward to outline their water and electrical use in writing.

Municipal governments can also regulate data centers when it comes to size and noise levels, Mills said. She said many planning commissions all over Michigan are now contemplating how they should approach data centers.

“Many cities haven’t seen a whole lot of industrial development recently,” Mills said. “It’s been decades since we’ve really seen a boom in industrial development, and so most of those zoning ordinances haven’t contemplated that kind of scale or haven’t kept up with modern regulations.”

At least 17 proposed or approved data centers

Data centers are typically massive warehouses that house computing equipment used to power the internet.

At least 17 data centers have recently been proposed or approved throughout Michigan, according to a list compiled by The Detroit News. In one of those cases, a developer withdrew its request to rezone roughly 1,000 acres of Howell Township farmland for a proposed center after township officials enacted a six-month moratorium on data center applications.

Kelley Lovati, president and CEO of the Macomb County Chamber of Commerce, said data centers can generate construction and skilled trades jobs. The centers also employ tech workers once they are operating.

But data centers also come “with a cost,” Lovati said. They are going to, for example, “put a strain” on utilities such as water and electrical systems, she noted.

“I think it’s really good that our communities are stopping and having a moment to look at their infrastructure, look at their zoning, talk to their communities, and to get that feedback,” she said. “Because I definitely think that there’s a good opportunity to bring these data centers here, but I also think we have to do our due diligence to make sure that it’s not going to hurt our environment.”

One proposal moves forward

In Lyon Township, a 1.8 million-square-foot data center is moving forward called Project Flex. Located on 172 acres east of Milford Road, south of Grand River Avenue, it was approved by the township planning commission in September.

Since the property is already zoned industrial and the three companies working on the project are not seeking any variances or zoning changes, the township board did not need to approve the plan.

Michael Carano owns a coffee shop in South Lyon, close to where the data center will be located. The center could potentially improve Wi-Fi in the area and be a positive for the community if it’s done correctly, he said.

Carano added that the community needs to get “as much knowledge about these data centers as possible before moving forward.”

“I want us to be a progressive community and go along with the times,” he said.

Carano’s sentiment is similar to that of Mayor Ken Siver in Southfield, where another data center has been proposed. Siver supports the construction of a 13-acre, 100-megawatt center by Metrobloks LLC near Inkster and 11 Mile roads. He argued that the project’s location and size would not be intrusive to residents.

Siver compares the panic surrounding data centers to the opposition to cell tower construction in the 1990s.

He said the city is not interested in a “mega center” but is also not “anti-data center.”

“We have nine of them already. We are a business hub,” Siver said.

Buying time

The five communities with moratoriums have bans ranging from 180 days to one year.

The moratoriums in Northville, Taylor and Sterling Heights last a full year. Springfield Township’s lasts 180 days; Pontiac’s lasts six months.

Pontiac Councilman Mikal Goodman tried to amend the city’s moratorium to 12 months, referencing Northville’s moratorium. But Olind, the attorney advising the process, cautioned against this move.

“Based upon the research that our office has conducted, six months seems to be the spot that has been enforceable and less likely to cause challenges,” Olind said.

Regulating data centers

Sterling Heights, Michigan’s fourth-largest city, is the largest of the five communities that have imposed moratoriums.

The measure gives staff time to research data centers and provide guidance to the City Council, said Jake Parcell, city planner and development manager. The city is already in the process of updating its zoning ordinance, and any changes related to data centers would be part of that.

Sterling Heights City Attorney Marc Kaszubski said data centers first appeared in the city’s zoning ordinance in 1978. Kaszubski said the power of the facilities and the way they’re being used is “different than it was back then.”

He added that data centers are “a lawful use.” While there isn’t room in Sterling Heights for a mega-scale center, there may be space for smaller data centers.

“So we would look at that from a zoning perspective and determine whether or not the controls are in place for nuisance abatement … to make sure that the use isn’t in the wrong area of the city,” Kaszubski said.

A data center wouldn’t be placed “in the middle of a subdivision,” he said, but it could be located in the city’s industrial corridor. Local governments can ban data centers in “certain parts of cities,” he said, but they generally can’t enact a “complete ban.”

Are moratoriums allowed?

At least one attorney questioned whether cities can even declare moratoriums.

Seiber, the Washington Township attorney, said the township’s legislative body ― the Board of Trustees ― can’t “simply” declare a moratorium. He noted that a “regulation of land” is done by a zoning ordinance amendment. Those amendments are started by a community’s planning commission.

Seibert’s advice came as the township is navigating a potential data center proposal. San Francisco-based real estate company Prologis submitted a conditional rezoning application for the development of a technical campus and data center on more than 312 acres in November, but withdrew its request in December.

After Seibert’s remarks, the Washington Township Board of Trustees voted to direct the township’s Planning Commission to review zoning ordinance provisions regarding data centers and consider amendments, if necessary. The commission will also conduct a public hearing on any proposed amendments and provide a recommendation to the Board of Trustees.

Seibert said the Planning Commission will determine in which type of zoning data centers should be placed. He recommended against a blanket prohibition on the centers. He said excluding data centers “blanket” isn’t “going to be upheld by a court.”

“It does not do you any good to take a meat ax to it and to simply ban a use for which there’s a demonstrated need and have a court strike it down,” Seibert said at the meeting.

Prologis is now asking for a straight rezoning of the property ― making it an “Industrial – Research – Technology” zoning district. The district allows for industrial and research facilities.

Prologis spokesperson Mattie Sorrentino said the company doesn’t have an update on the Washington Township proposal.

“We agree with the township attorney’s view that land-use decisions are appropriately addressed through zoning ordinances and planning commission review, rather than through blanket prohibitions,” Sorrentino said in a statement.

Data center opponents

Jon Tarlo, an Armada Township resident who opposes the data center proposal in nearby Washington Township, said critics need to ensure the way they oppose the plan is “legally defensible.”

Tarlo pointed to the situation in Saline Township, where a company sued the township over its initial decision to oppose the rezoning for a massive data center, but the township board eventually allowed the project to move forward to avoid a costly court battle.

Townships can’t compete with the resources of a data center applicant in a legal fight, and they have to settle, he said.

“And then they’re stuck with a data center that nobody really wanted. So it’s really coercion, right?” Tarlo said.

Limiting data centers to designated industrial districts — and regulating those districts — is an effective way to regulate data centers, the University of Michigan’s Mills said. It makes sense to put a “sound standard” in an industrial district, given the concerns about data centers and noise, she said.

At a Jan. 22 informational session about Lyon Township’s Project Flex, which will include six buildings on 172 acres, Verrus representatives said the data center will rely on battery energy storage systems rather than conventional diesel generators. This will limit how loud the data centers are, they said.

But Township Planner Brian Keesey said officials have pushed back against a sound study Verrus conducted and submitted to the municipality, noting it’s “pretty basic.” Township officials expect Verrus to update the study.

In a statement to The News, Verrus said the project is designed to make the company “a good neighbor.” Verrus has ties to Google, Apple, Meta and X, according to its website.

“The team has worked closely with Lyon Township leaders, listening carefully to questions, community concerns and excitement about what this investment could mean for the community,” the statement read. “That dialogue has helped shape a project focused on long-term benefits, including new tax revenue, infrastructure improvements, and a design that prioritizes low water use, quiet operations, and grid reliability.”

UM’s Mills, a planner, said cities also could regulate how much a data center affects the appearance of an area, and the owner’s responsibilities at the end of a data center’s life.

“If you’ve got a data center that’s knocking on your door and you’ve got a proposal in front of you, I think there are some other things you can think about in terms of getting your zoning ordinance in order.”