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Michigan is becoming a hotspot for data center development, with proposals across the state raising questions about energy use, water demand, land impact, and transparency. As companies expand the infrastructure behind cloud computing and artificial intelligence, communities are weighing the local consequences.Michigan’s Data Center Divide is WKAR News’ reporting hub on why companies are targeting Michigan, how data centers could affect electricity rates and local resources, and what it means for residents.

BWL scratches controversial resolution dealing with data centers

The front of the BWL's headquarters building in REO Town.
Arjun Thakkar
/
WKAR-MSU

Commissioners on the Lansing Board of Water and Light are backtracking on a resolution that would have changed how the utility manages contract rates with data centers.

The resolution was supposed to be on Tuesday night’s board meeting agenda but was removed from consideration following community pushback.

“I am asking you to reject the resolution because it is inconsistent with good governance, public accountability, sound financial practices, and environmental stewardship,” wrote Lansing resident Connie Jones in a public comment to the board.

If passed, the resolution would have weakened the board's ability to weigh in on rate structures with data centers and give more power to the utility administrators to make those decisions.

Data centers locating in the BWL’s domain will need to enter unique contracts with additional costs. The utility company said this is because the current rate structure doesn’t work for data centers’ electric demands.

“If the resolution is adopted, this and other significant decisions will be made without opportunity for public input on these new and unique issues that are clearly matters of public interest,” wrote Lansing resident Therese Ojibway.

WLNS reported General Manager Dick Peffley said the utility heard the community’s concerns at the meeting and that the resolution was only meant to streamline the process, not circumvent procedures.

The board will continue to hold authority over setting rates for data centers.

Peffley called the decision a “win-win” because it’s easy and doesn’t prevent the utility from taking on new customers.

BWL is a financial supporter of WKAR.

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