In the past year, proposed data center development has sparked debate in communities across this country with concerns about high resource use, increased utility costs, land use compatibility, and job creation claims. At the same time, growing data demands and the proliferation of AI necessitate that these facilities be built somewhere, and data centers may offer significant tax benefits for some communities – leaving mayors and local leaders with challenging decisions.
When local leaders prioritize community needs, negotiations with data center developers can produce promising outcomes. Lansing Mayor Andy Schor and the Lansing City Council are exemplifying that with their new partner – Deep Green – a UK-based sustainable data center developer. The company aims to “build and operate modular, high density data centers for AI and high-performance computing [that are] ultra-efficient, waterless, and designed to reuse heat for everyone’s benefit.”
Deep Green approached Mayor Schor and Lansing city leadership about building a first-of-its-kind 24-megawatt data center on three parcels of land currently occupied by underutilized parking lots on the east side of downtown Lansing. The proposed facility would feature a closed-loop water-glycol cooling system to minimize the facility’s water consumption, as well as a novel approach to heat recovery. It will supply carbon-neutral heat for Lansing’s downtown hot water system making Lansing a national model for sustainable technology and cleaner energy innovation. Deep Green estimates that the facility could reduce the Lansing Board of Water and Light’s (BWL) natural gas demand by as much as 310 million cubic feet annually or roughly the equivalent of what ~5,000 homes use annually.
The $120 million facility will generate over $870,000 in property tax revenues annually, and Deep Green will pay an estimated $1 million to BWL for service. During negotiations with BWL and city leadership, Deep Green agreed to cover the cost of all necessary infrastructure required for BWL to service the facility, maintaining BWL policy that no new customer will ever drive rate increases on existing customers. And to further Deep Green’s commitment to becoming a community partner, they will give $120,000 annually to BWL’s Pennies for Power program to support low-income residents with their utility costs. Deep Green’s annual contribution to the program will more than double the Pennies for Power funding.
In January 2026, Deep Green will host public engagement events in Lansing for residents to ask vital questions about the development, learn more about the company and proposal, and hear from City Council leaders before the Council votes on the project.
With so many stories of data center developments causing concern for communities and residents, Lansing offers an emerging example of how city leaders can work together with the private sector to see both new development and community benefit.
