Deep Green Scraps Lansing Data Center Plan Ahead of Key Council Vote
April 7, 2026
In a significant setback for a novel approach to sustainable data center development, UK-based Deep Green has formally withdrawn its application to build a $120 million facility in Lansing, Michigan. The move comes just days before the Lansing City Council was scheduled to vote on the controversial project, which aimed to pioneer a model where waste heat from computing servers is directly repurposed for community use.
The company had planned to develop a 24-megawatt data center, designated DC06, in partnership with the municipal utility Lansing Board of Water & Light (BWL). The core proposal involved supplying carbon-neutral heat generated by the facility's high-performance computing servers directly into BWL's hot water system, offering it for free. This model, central to Deep Green's strategy of placing IT infrastructure where its thermal output can be fully utilized, promised both emissions reductions and operational savings for the utility. Construction was anticipated to begin in spring 2026.
However, facing public opposition, Deep Green opted to withdraw its requests to purchase city-owned parking lots and for the necessary rezoning. Lansing Mayor Andy Schor confirmed the withdrawal, stating, "I also have heard the concerns raised by some members of the Lansing public," despite previously being encouraged by the project's potential for generating new, sustained city revenue. The city's planning commission had also sent mixed signals, ultimately recommending the land sale but opposing the rezoning late last year.
In a statement, Deep Green emphasized its continued commitment, saying, "We are confident that Michigan is a place that values responsible development, and we continue to work with local partners and communities in the region." BWL General Manager Dick Peffley expressed disappointment, highlighting projected benefits including an annual $120,000 donation to a customer assistance fund and "related emissions reductions" for future hot water customers.
The withdrawal marks a notable pause in Deep Green's ambitious rollout, which targets deploying 300MW of distributed capacity across Europe and the United States. The company, backed by UK utility Octopus Energy, has operational sites at UK leisure centers and several projects in various planning stages, including a 20MW facility near Lincoln and a 5MW project in Bradford. The Lansing project's failure to advance underscores the complex local approvals even for projects with clear sustainability angles, potentially influencing how similar heat-recycling proposals are received in other municipalities.
Source: datacenterdynamics
