What Communities Need to Do: Data Center Proposal Response Guide
Last Updated: February 10, 2026
Version: 1.0
Maintained by: The Open Record L3C
License: This guide may be freely shared, printed, and adapted for community use.
This guide provides actionable steps for communities facing large-scale data center proposals. It's designed to be practical, printable, and updated as new patterns emerge. Based on research across multiple Michigan townships and national infrastructure consolidation patterns.
🚨 If a Proposal Just Landed: First 48 Hours
Immediate Actions
- Document everything: Save all materials provided by the developer
- Request 30+ days minimum for community review (resist artificial urgency)
- Form a community research committee (5-10 volunteers)
- Contact neighboring townships facing similar proposals
- Check if your officials signed NDAs with the developer
- Search for news coverage of the developer's past projects
- Post about the proposal on community social media
- Schedule a community information meeting (not run by the developer)
🔍 Research: What You Need to Know
Demand Ultimate Ownership Disclosure
The developer's name is not the answer. You need:
- All equity partners and their ownership percentages
- Corporate parent structures through all holding companies
- Sovereign wealth fund participation (Kuwait, Singapore, UAE, etc.)
- Financial backers beyond construction financing
- Technology company relationships (who will lease/use the facility)
- Any ownership ties to local utilities, water systems, or other infrastructure
🚩 RED FLAG
If the developer refuses to disclose the customer or ultimate owners, that's a major warning sign. Build-to-suit developments typically disclose tenants because communities have legitimate interest in 30-year operators.
Map Infrastructure Overlap
Research whether the same entities own or hold significant positions in:
- Local utility companies (check SEC filings for major shareholders)
- Residential real estate in your region
- Water treatment or distribution systems
- Other data centers or industrial facilities nearby
- Transportation infrastructure (ports, rail, airports)
Why this matters: When one entity controls multiple infrastructure layers, each approval strengthens their leverage over future decisions.
Research the Timeline
Questions to ask:
- When did the developer acquire the land?
- How long have they been in discussions with utilities about power allocation?
- What infrastructure investments have already been committed?
- Are there federal or state funding applications pending?
- Has the utility already begun planning transmission upgrades?
The further along a project is before public disclosure, the less leverage you have. Projects with land secured, power committed, and financing arranged present communities with pressure to approve or face lawsuits.
💰 Calculate the Real Economics
Developers present rosy job creation and tax revenue projections. Communities should independently verify the numbers.
Cost Per Job
Formula: (Total subsidies + infrastructure costs) ÷ Permanent jobs
Count only permanent operational jobs, not construction jobs. Data centers typically employ 30-50 permanent workers for facilities consuming 1 gigawatt of power.
Net Fiscal Impact
Calculate: Tax revenue minus
- Infrastructure costs (road improvements, utility upgrades, water system expansion)
- Emergency services (fire department equipment for electrical/chemical fires)
- Environmental monitoring costs
- Administrative costs (staff time, legal fees, consultants)
Opportunity Cost
What else could the same land, water allocation, and power capacity support?
- Manufacturing facilities (200-500 jobs per similar power draw)
- Community college expansion (serves 2,000-5,000 students)
- Mixed-use development (housing + commercial + jobs)
- Agricultural preservation (food security, quality of life)
Subsidy Reality Check
Michigan's 2025 legislation eliminated:
- Sales tax on construction materials and equipment through 2050
- Use tax on the same
Plus developers typically negotiate:
- Property tax abatements (10-30 years)
- Utility rate discounts for industrial customers
- Fee waivers (permitting, inspection, impact fees)
Add these up before believing "tax revenue" projections.
🚩 Red Flags That Should Trigger Maximum Scrutiny
1. Sovereign Wealth Fund Involvement
When government-backed entities from Kuwait, Singapore, or UAE appear in ownership, you're not facing private equity with 5-10 year timelines. You're facing entities with infinite patience and strategic priorities that override financial returns.
Implication: Financial pressure won't work. They can outlast any community opposition.
2. Vertical Integration
When the same entity owns both the data center AND significant positions in your utility company, questions arise:
- How are rates set when the same entity profits from both sides?
- Who gets priority during power shortages?
- Do subsidies flow to one pocket while revenue flows to another?
3. Non-Disclosure Agreements for Public Officials
If your township officials signed NDAs, they cannot fully inform constituents before votes. This serves developer interests, not public interests.
What to do: Demand sunset provisions and public disclosure after decisions. Better yet: refuse NDAs entirely.
4. Federal "National Security" Framing
When developers invoke national security, AI leadership, or competition with China, they're attempting to override local control.
Reality check: Truly sensitive national security projects have established processes. They don't rely on developers making vague claims to township planning commissions.
5. "Economic Development" Groups Negotiating On Your Behalf
These entities often have relationships with developers and prioritize deal completion over community concerns.
Example: Van Buren received an op-ed from Detroit Region Aerotropolis Development Corp. promoting Project Cannoli. These development corporations exist to facilitate deals, not represent community interests.
6. Artificial Urgency
Phrases like:
- "This deal is time-sensitive"
- "We have other locations under consideration"
- "Incentives expire soon"
- "We need approval by [arbitrary date]"
Response: Decisions lasting 30 years shouldn't be rushed in 30 days. Establish minimum review periods regardless of developer timelines.
❓ Questions to Ask Developers
About Ownership
- Provide the complete ownership structure from the project entity through all parent companies to ultimate beneficial owners.
- Disclose any sovereign wealth fund participation (names and percentages).
- Identify any ownership relationship with technology companies that will lease capacity.
- Reveal any ownership or investment relationship with utilities supplying power or water systems.
- If you won't disclose the customer, explain why not.
About Infrastructure
- Which specific power generation sources will supply this facility?
- If the utility needs to build new generation capacity, who pays? (Get this in writing from the utility.)
- If transmission upgrades are required, who pays?
- What happens to power allocation during grid emergencies or shortages?
- How many gallons of water per day at maximum capacity? (Require a range: minimum, typical, maximum.)
- Where does that water come from and what's the backup source?
- What chemicals are used in cooling systems? Provide Material Safety Data Sheets.
- How are cooling system chemicals disposed of?
- What happens to heated water discharged from cooling systems?
About Operations
- How many permanent jobs? (Not construction jobs.)
- What are the salary ranges for permanent positions?
- What percentage of construction jobs go to local workers?
- Will you commit to hiring locally for operations? (Get it in writing.)
- What are the noise levels at property lines during normal operation?
- What are the noise levels during generator testing?
- How often will backup generators be tested?
- What are generator emissions?
- Will the facility operate 24/7/365?
- What's the planned operational lifespan?
- How many truck deliveries per day/week?
About Exit Scenarios
- What happens if the project is sold to another operator?
- Do tax agreements remain binding on future owners?
- What are the decommissioning requirements?
- What bonding is required for decommissioning?
- Who is responsible for site remediation when operations cease?
- What happens to the building if the data center becomes obsolete?
🤝 Coordination with Neighboring Communities
The consolidation pattern operates across jurisdictions. When one township approves a data center, it affects power and water availability for neighbors.
What to Share
- Developer names and ownership structures
- Terms offered (tax abatements, utility commitments, job promises)
- Infrastructure impact assessments
- Community concerns and opposition tactics
- Legal strategies and consultant recommendations
- Developer responses to tough questions
Benefits of Coordination
- Pattern recognition: Discover if the same entities are making similar promises across multiple communities
- Cumulative impact analysis: Multiple projects = cumulative strain on shared resources
- Stronger negotiating position: Coordinated communities have more leverage than isolated townships
- Shared costs: Split the expense of independent technical consultants and legal review
Michigan Example: Van Buren, Saline, and Lyon Townships all face significant proposals. Information sharing would reveal ownership connections and promise patterns.
📋 Build Your Own Expert Team
Independent Technical Review
Don't rely solely on developer-provided studies. Hire your own experts:
- Environmental Engineer: Water usage, discharge, noise, air quality ($5,000-$15,000)
- Fiscal Impact Analyst: Real costs vs. revenue projections ($3,000-$10,000)
- Land Use Attorney: Contract review, negotiation strategy ($5,000-$20,000)
- Utility Expert: Power grid impacts, rate implications ($3,000-$8,000)
The cost of consultant review ($15,000-$50,000 total) is far less than the cost of a bad 30-year decision.
Funding Independent Review
- Request developer pay for independent review (condition of approval)
- Community fundraising (crowdfunding, local donations)
- Split costs with neighboring townships
- Request state/county grants for municipal planning
⚖️ Legal and Procedural Strategies
Establish Minimum Review Periods
Pass a resolution requiring:
- Minimum 60 days from complete application to first public hearing
- Minimum 30 days between public hearing and final vote
- Independent technical review completion before final vote
- Community referendum option for projects above certain thresholds
Community Benefit Agreements
Get promises in writing with penalties for non-performance:
- Job creation: Specify number, salary ranges, local hiring percentages
- Penalties: If developer creates 20 jobs instead of promised 50, what's the consequence?
- Tax commitments: Lock in property tax payments even if valuations change
- Infrastructure: Who pays for upgrades, and what's the timeline?
- Environmental: Monitoring requirements, water usage limits, noise limits
Environmental Review Requirements
Even if not legally required, demand:
- Environmental Impact Statement (not just assessment)
- Cumulative impact analysis (this project + other proposals)
- Alternative site analysis (why this location vs. others?)
- Long-term monitoring plan and funding
📢 Public Engagement Strategies
Attend Every Meeting
Planning commissions and township boards make these decisions.
- Five people showing up: Low turnout, officials feel safe approving
- Fifty people showing up: Changes the dynamic, officials face accountability
- Regular attendance: Shows sustained opposition, not one-time turnout
Effective Public Comment
- Be specific: Cite exact numbers, quote developer materials, reference studies
- Stay factual: Emotional appeals have less impact than documented concerns
- Bring visuals: Maps, charts, photos from other communities
- Submit written comments: They become part of the permanent record
- Coordinate messages: Different speakers covering different concerns = more comprehensive record
Media Engagement
- Contact local journalists EARLY (before developer controls the narrative)
- Provide journalists with documents, data, and expert contacts
- Write letters to the editor (short, factual, timely)
- Use social media strategically (create community group, share updates)
- Document everything with photos/video (meetings, presentations, site visits)
📚 Resources
Regulatory Agencies (Michigan)
- Michigan Public Service Commission: Utility regulation - (517) 284-8090
- Michigan EGLE (Environment, Great Lakes, and Energy): Environmental permits - (800) 662-9278
- Michigan Department of Agriculture & Rural Development: Farmland preservation - (517) 284-5605
Model Legislation & Toolkits
- Americans for Financial Reform: Data center consolidation research
- Institute for Local Self-Reliance: Community ownership models
- Partnership for Working Families: Community benefit agreement templates
Data Center Impact Studies
- Government Accountability Office (2024): "Large Institutional Investors in Single-Family Rental Housing"
- Urban Institute: Institutional ownership research
- U.S. Energy Information Administration: Data center energy consumption data
Contact Information for Coalition Building
If your community is facing a data center proposal and wants to connect with others, contact:
- The Open Record L3C: Research and coordination support
- Planet Detroit: Michigan environmental justice reporting
- Michigan Environmental Council: Policy advocacy
📝 Document Template: Initial Information Request
Use this template when a developer first approaches your community:
[Date]
[Developer Name]
[Address]
RE: [Project Name] - Initial Information Request
Dear [Developer Representative],
On behalf of [Township Name] and its residents, we request the following information regarding the proposed [Project Name] data center:
1. OWNERSHIP DISCLOSURE
- Complete ownership structure chart from project entity through all parent companies to ultimate beneficial owners
- Names and ownership percentages of all equity partners
- Any sovereign wealth fund participation
- Any ownership relationship with technology companies that will lease the facility
- Any ownership or investment relationship with local utilities or water systems
2. INFRASTRUCTURE IMPACT
- Peak power consumption (megawatts) and source of supply
- Water consumption (gallons per day - minimum, typical, maximum)
- Cooling system design and chemical usage
- Wastewater discharge volume and temperature
- Truck traffic (deliveries per day/week)
3. EMPLOYMENT
- Number of permanent operational jobs (not construction)
- Salary ranges for permanent positions
- Local hiring commitments
4. FISCAL IMPACT
- Requested tax abatements or incentives
- Infrastructure costs borne by township/county/state
- Timeline for property tax payments
5. TIMELINE
- Date of land acquisition
- Status of utility agreements
- Planned construction start and completion dates
Please provide this information within 30 days. We will not consider any approval timeline that does not allow adequate community review of complete information.
Sincerely,
[Your Name]
[Title/Role]
📅 Updates & Version History
Version 1.0 (February 10, 2026):
- Initial release
- Based on Van Buren, Saline, and Lyon Township cases
- Incorporates BlackRock/Aligned consolidation research
Planned Updates:
- Case studies from communities that successfully negotiated strong terms
- New red flags as patterns emerge
- Updated regulatory contact information
- Model ordinance language
- Community benefit agreement examples
To suggest updates or share your community's experience, contact The Open Record L3C.
This guide is maintained by The Open Record L3C.
Free to use, share, print, and adapt for community organizing.
Last updated: February 10, 2026