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Revenue from data centers in Lansing could be used to fund housing support services in the city under a new plan.
The proposed ordinance would dedicate 10% of revenue the Lansing Board of Water and Light receives from data center utility use to fund housing support services.
The funds could be used to help prevent residents from losing their homes, assist unhoused community members with finding stable housing or to develop new housing.
The Fledge CEO Jerry Norris said he is concerned about the possibility of utility rates increasing because of data centers.
“We are going to cause more housing problems by raising rates like that,” Norris said. “We are not resilient enough to absorb this data center.”
The city is currently considering whether to approve a data center, with a final vote possible by late February.
Norris said relying on data centers to fund housing solutions could make controversial data center projects harder to resist.
“It sets a precedent that, hey, we’re accepting all data centers, and I don’t think we should accept this one,” Norris said.
The plan is similar to one in a Virginia county that held more than a dozen data centers as of May 2024.
He said a greater percentage of the revenue from data centers should be dedicated to housing if City Council members move forward with the plan.
City officials have been criticized for clearing an encampment of unhoused community members. Those residents are being temporarily housed in a hotel.
Residents who spoke during Monday night’s City Council meeting said the temporary housing is helping them get back on their feet – with some finding employment – but warned they risk losing that progress if the temporary housing ends before they are able to find a more permanent solution.
