Microsoft Identified as Firm Behind Controversial Michigan Data Center Proposal

• A December public hearing was postponed after large crowds of locals objected, citing concerns about the township moving too quickly and lacking clarity on energy requirements and other impacts
• The development would require rezoning of industrial land and is part of Microsoft's plan to nearly double its data center portfolio over the next two years to support AI infrastructure needs
• Key community concerns include water usage and energy supply, though local utilities have stated the project would not raise rates for existing customers

Summary

Key Development: Microsoft has publicly identified itself as the company behind a controversial data center proposal in Lowell Charter Township, Michigan, ending weeks of speculation about the mystery developer partnering with Illinois-based Franklin Partners.

Project Details:

• Location: 237-acre site beside Interstate 96, approximately 20 miles southeast of Grand Rapids
• Investment: $500 million to $1 billion over 3-5 years
• Site: Currently empty lot in Covenant Business Park, zoned as industrial planned unit development
• Requirement: Rezoning to light industrial status needed for project approval

Community Opposition: In December, a large crowd of residents forced planning officials to postpone a public hearing on the development. Local concerns include the township's rapid rezoning timeline, energy requirements, and water consumption. The project has become contentious enough that one business owner protested in a Mr. Peanut costume.

Broader Context: Microsoft CEO Satya Nadella announced plans to nearly double the company's data center portfolio within two years. This expansion aligns with industry-wide infrastructure investments by tech giants including Amazon, Google, Meta, Oracle, OpenAI, and xAI to support AI workloads requiring substantial computing power.

Market Implications: Big Tech companies are collectively spending hundreds of billions annually on capital expenditures, raising bubble concerns. Data center development faces growing challenges as utilities in some markets report inability to meet energy demands, complicating site selection. Local officials have secured agreements ensuring no additional costs to ratepayers for increased water capacity and electricity rates.

Next Steps: The planning commission is scheduled to reconvene January 12. Microsoft requested the rezoning process be paused to allow community engagement.