Data Centers

A data center typically has one or more buildings to store the physical infrastructure needed to provide modern digital services like streaming, online searches, and digital transactions. The facilities may include computers, servers, storage, and networking equipment, as well as advanced power, cooling, and cybersecurity systems.

Data centers process, store and distribute vast amounts of data. The overall size of a data center can range from a small room to a large complex. The recent widespread adoption of artificial intelligence (AI) has increased demand for large-scale data centers. As these sites become more complex, the area of land, energy use, water use, and environmental impact are also expanding.

Data centers allow the modern digital services that individuals and organizations use every day to function. Streaming, online searches, digital transactions, cloud-based computing, storage, web hosting, online gaming, and scientific research all rely on data centers.

In recent years, AI use has expanded rapidly. AI relies heavily on data centers and requires immense computing power to process requests. Larger and more complex data centers are being proposed and built in response to the increased demand generated by AI usage.

Data centers fall into three main categories:

1. Enterprise or internal data centers are privately owned facilities that manage a company's own IT operations. They are typically 5,000 to 100,000 square feet and typically consume up to 100 megawatts (MW) of power.
2. Colocation centers are third-party facilities that rent space, power, and cooling infrastructure to multiple organizations, allowing businesses to outsource their data center needs. The size of colocation centers varies and can be as large as hyperscale centers.
3. Hyperscale data centers are large complexes operated by major technology companies to support cloud computing and AI workloads. They are typically a minimum of 10,000 square feet and have a power consumption exceeding 100 MW. Many exceed one million square feet or 15 football fields.

Data centers are often taller than single-story warehouses and require more robust electrical, fiber optic, and cooling infrastructure. Data centers require significant external electrical and mechanical equipment and are frequently sited along existing underground fiber optic cable networks.

Data centers require robust fire detection and suppression systems because of onsite batteries and/or generators. Data centers need relatively few onsite employees, so they usually require fewer parking spaces and have reduced long-term impact on traffic.

The energy, water, and land use of data centers varies greatly based on the size of the data center and the technology used within the facility.

Energy: Data centers use electricity to run the facility’s information technology equipment and to power cooling systems that remove heat generated by the IT equipment.

In 2023, data centers consumed approximately 4.4% of all energy in the United States. Forecasts indicate that data centers will consume up to 12% of all energy in the U.S. by 2028, equivalent to all residential energy use in 2024 (U.S. Department of Energy 2024 Report on U.S. Data Center Energy Use).

Water: Data centers use freshwater for direct cooling and/or for indirect energy needs. There are different types of cooling systems that use varying amounts of water and energy. Generally speaking, cooling technologies that use more water tend to use less electricity, and cooling systems that use less water tend to use more electricity.

Land: Data centers come in different sizes and space requirements. The data center proposed in Saline Township in 2025 would be the largest in Michigan, covering approximately 2.2 million square feet on 250 acres of land. To date, the largest data center constructed in Michigan is the Switch Data Center in Grand Rapids, at 142 acres.

A battery energy storage system (BESS) is a large-scale rechargeable battery system that stores energy for later use. BESS is often paired with data centers to reduce pressure on the power grid during peak usage and to provide back-up power.

BESS is also used to store excess renewable energy for later use. For example, solar panels may charge a battery during the day, allowing the battery to power the data center during the night when the panels aren’t generating power.

To address the potential fire risk, communities can require data center developers to invest in additional fire detection and suppression systems, as well as specialized training for local fire departments.

The University of Michigan has a BESS planning and zoning guide with more information, and Oakland County worked with Five Lakes Energy to identify a series of BESS case studies.

Michigan is a Home Rule state. Local cities, villages and townships in Oakland County have jurisdiction over planning, zoning, site plan review, approvals, and code enforcement related to data centers and their affiliated uses, in accordance with their adopted plans, ordinances and procedures. Oakland County does not have jurisdiction over planning, development or approval for data centers.

The County may be involved in a project if the following conditions are met:

1. The development site is located on County-owned property. The County would be required to comply with the local community’s land use, zoning, and building requirements.
2. The development site is located in a township on property which:
   1. requires rezoning and is adjacent to a County-owned property
   2. and/or the property requires rezoning and is located on the border of another city, village, or township.
   If those conditions are met, then the County would conduct a review and have an advisory role through the Coordinating Zoning Committee.
3. Oakland County departments and agencies (e.g., Road Commission, Water Resources Commissioner, Health Department, etc.) may have jurisdiction over reviewing, permitting, and/or approving certain aspects of new developments and would perform those same functions with any new data center.

Local cities, villages, and townships in Oakland County have jurisdiction over site plan review and approval processes.This authority is granted through the Michigan Planning Enabling Act (Public Act 33 of 2008) and the Michigan Zoning Enabling Act (MZEA) (Public Act 110 of 2006).

Several Michigan communities have already enacted ordinances specifically addressing data centers, establishing standards for water usage, noise, height, site planning, and environmental safeguards. Others have adopted temporary moratoriums to allow time to study potential impacts, gather community input, or draft new regulations.

Municipalities:

• Must operate within the limits of state enabling acts.
• Cannot impose arbitrary bans or adopt ordinances that exceed what is allowed by the state.
• May establish zoning districts and determine which land uses (e.g. industrial, agricultural, commercial, residential, etc.) are permitted within them.
• Must follow the procedures outlined in the Michigan Planning Enabling Act for any amendments to local master plan.
• Must follow the processes outlined in the Michigan Zoning Enabling Act for any updates to zoning ordinances.

For a data center to be developed, the underlying land must be appropriately zoned (or rezoned) to allow for industrial or another applicable use. Although it is not common, a community’s Zoning Board of Appeals (ZBA) may be requested to interpret if an existing zoning classification would accommodate data center development. A rezoning would require the municipality to amend the zoning map and/or zoning ordinance. If a rezoning is required, the municipality’s Planning Commission will review the proposal, hold required public hearing(s) and make a recommendation to the municipality’s elected legislative body (e.g., Township Board, City/Village Council).

When a development plan is submitted, it is to be reviewed in accordance with the local municipality’s review process.

From time to time, a municipality may update ordinances and/or zoning districts to change the requirements for setbacks, environmental protections, and site design standards. A municipality may also adopt ordinances or create special zoning districts and/or overlay zones tailored for intensive land uses. Within these areas, noise, water usage, building height, layout, setbacks, and additional design or environmental requirements may be defined. Some communities may have a special land use permit option, may utilize a Planned Unit Development (PUD) process, or use a conditional rezoning process to provide flexibility and allow site-specific negotiations for large or complex projects. These processes each involve at least one public hearing.