Pontiac races to write data center rules before moratorium ends in January

Pontiac has until January to decide how it will regulate data centers, and city leaders say they are working to get rules in place before the clock runs out.

The city is in its second six-month moratorium on data centers, which expires in January 2027, WXYZ-TV reported Sept. 25. A moratorium is a pause, not a ban, giving the city time to set requirements meant to protect residents.

What the draft rules cover

A draft ordinance being worked on by the city's special committee on data centers addresses water and air quality, utilities and quality-of-life issues such as noise, according to Councilman Mikal Goodman, who represents District 3 and serves on the committee.

Proposals under discussion would require data centers to pay for their own utility installations rather than draw on the community's resources. Goodman also said he opposes diesel backup generators, citing health risks from their fumes.

The city's goal, Goodman told WXYZ, is "to have a functioning ordinance that takes into account our community's wants, needs and desires."

Why the city can't just say no

Under Michigan law, communities cannot exclude data centers entirely, according to WXYZ.

"So, there is a lot of things we can do, even though we cannot ban data centers," Goodman said.

Catherine Mullhaupt, staff attorney for the Michigan Townships Association, said local governments can't refuse a new type of land use outright. "You cannot exclude it," she said. Mullhaupt said the scale of data centers is why many communities are taking time to pause them.

Where data centers could go

A city map shows areas, shaded blue, where data centers could be built once the moratorium lifts, including areas along Baldwin and Kennett that are not far from existing residential neighborhoods.

Goodman said occupied areas, shown in gray on the map, are not excluded. A corporation could buy a property in one of those areas and build a data center there, he said.

What it means for residents

There are no known plans to build a data center in Pontiac, according to WXYZ.

Still, some residents are wary. "I don't like them. They don't need to be around here," Pontiac resident James Cox told the station. Cox said he is on a fixed income and worries about what data centers could mean for his energy bill.

What's next

The special committee is continuing work on the ordinance, which would need to be in place before the moratorium expires in January. No meeting dates or vote schedule for the ordinance have been announced.

This story uses reporting from WXYZ-TV (7 News Detroit).