Lansing Planning Commission Splits Vote on $120 Million Data Center Proposal

Lansing Planning Commission Splits Vote on $120 Million Data Center Proposal December 5, 2025 A proposed $120 million data center project in Lansing, Michigan, has encountered a complex regulatory hurdle, highlighting the growing tension between municipal development goals and community concerns over infrastructure projects. The case underscores the challenges data center operators face when expanding into new markets, particularly when their models involve novel approaches like waste heat reuse. According to local reports, the Lansing Planning Commission delivered a split decision on December 2 regarding the development plans of UK-based firm Deep Green. Commissioners voted to recommend the sale of city-owned land to the company but simultaneously voted against a crucial rezoning request necessary for the project's construction. The final authority on both matters rests with the Lansing City Council. The proposed facility is a 24-megawatt, two-story data center spanning 25,000 square feet. Deep Green intends to build it on a 2.7-acre parcel currently used as a municipal parking lot, located between Kalamazoo Street, S. Cedar Street, and S. Larch Street. A key aspect of the project is a planned partnership with the Lansing Board of Water & Light, through which the data center's waste heat would be captured and supplied as free, carbon-neutral heating to the utility's network. The commission's mixed verdict followed a previous meeting where the decision was delayed due to opposition from local residents. Community members have expressed concerns about the potential impact of the data center on utility rates and the local environment. Deep Green, launched in 2023, has built its reputation on siting facilities adjacent to heat consumers like swimming pools, a model demonstrated at a flagship site in Exmouth, England. The outcome in Lansing is being closely watched as a test case for sustainable data center development in urban areas. A successful project could pave the way for similar symbiotic infrastructure models, turning data centers from pure energy consumers into community heat providers. However, the regulatory uncertainty demonstrates that gaining local approval remains a significant hurdle, even for projects with clear sustainability benefits. The City Council's upcoming decision will determine the fate of this significant investment and set a precedent for future developments in the region. Source: datacenterdynamics