On the agenda: Ionia City Council-Planning Commission Joint Informational Meeting — Data Center (Sep 9)

JOINT CITY COUNCIL-PLANNING COMMISSION INFORMATIONAL MEETING
AGENDA
5:30 PM, Wednesday, September 9, 2026
IONIA THEATRE - 205 W. MAIN STREET
I.

Call to Order

II. Roll Call
III. Approval of Agenda
IV. Presentation - Jean Hardy MSU associate professor in the Department of Media &
Information
V.

Presentation - Allen Bacon with Consumers Energy

VI. City Council and Planning Commission Discussion & Questions for Speakers
VII. Public Comments
VIII. Meeting Wrap-Up - Mayor Milewski
IX. Adjournment

PUBLIC PARTICIPATION POLICY: City Council’s Rules of Order and Conduct for City
Council Meetings provides opportunity for the public to address Council during the Public
Comment section identified on the agenda. Your opportunity to speak occurs after you have been
recognized by the Mayor. When addressing Council, please state your name and address. Comments
will be limited to 3 minutes unless additional time (up to 5 minutes) is granted by the Mayor.

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Data Centers in Michigan: What should you
know from a local governance perspective?
Ionia Joint City Council & Planning Commission Meeting
Dr. Jean Hardy
Associate Professor of Media & Information
Associate Director, Quello Center for Media & Information Policy
September 9, 2026

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Talk Outline
• What are data centers?
• Primary issues and concerns surrounding data centers
• Community benefits
• How do communities prepare for a potential data center proposal?

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Where are we now?
• Controversy around data centers has stalled out many proposals and it’s
unclear where data center momentum is going.
• Lots of policy movement in the State House and Senate since February,
including signaling for Gov. Whitmer’s office
• Massive number of moratoriums across the state, increasing interest in
local regulatory approaches (e.g., modifying industrial zoning,
community benefits agreements).
• Data centers continue to activate community and citizen response, even
if there is no proposed development on the horizon (or any chance of a
data center getting sited in a community).
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What is a Data Center?
• Data centers are physical buildings
housing networked computer servers
used for remote storage, processing, or
distribution of data.
• Have existed since conception of the
Internet and help transmit data from one
place to another.
• Increasingly important as more of our
digital services moved off of our devices
(e.g., smartphones, laptops) onto cloudbased services.
• Data centers have become essential
infrastructure to our daily lives.
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Image by New America
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Why Now?
• There were over commercial 70 data centers already in operation in
Michigan in 2023, with likely 100+ more data centers that were used by
a single entity (e.g., a corporation, a university – there are 8 alone at
MSU).
• The past three years triggered a drastic change in demand for
computational infrastructure. AI training and inference require massive,
sustained, always-on computing power.
• Data centers today are dramatically larger and more energy intensive
than they were a decade ago.
• Data centers are being proposed in places that have never had to think
about projects at this scale before. Essentially, communities are
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What is realistic for a place like Ionia?
• The 60-acre size of the technology park greatly limits the size of a
data center that could be sited there.
• Even in utilizing 40 of those 60 acres, you’d be looking at a 20-40
megawatt facility that would only occupy about half of the land
space (the size of a typical warehouse facility).
• This amounts to being about 30 times smaller than the hyperscale data

centers causing concern in Saline Township, Van Buren Township, and
Gaines Township.

• That being said, it’s unlikely that Ionia will see a proposed data
center in the near future because of broader controversy and
public push back against data center development across the Page 8 of 46

Primary issues and concerns surrounding data
centers

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Data centers cannot be outright banned as
they are a legal and permissible land use per
the Michigan Zoning Enabling Act.

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Resource consumption
• Electricity is essential to operation and cooling, water is essential to
cooling.
• Electrical and water consumption are essentially trade-offs: the more
water a data center uses, the less electricity it needs to use; the less
water a data center uses, the more electricity it needs to use.
• Open vs. closed loop systems.
• Upwards of 80% of proposed data centers use closed loop cooling
exactly because it uses much less water.
• A 40 MW facility in Ionia would be comparable to the siting of midsized industrial manufacturing facility (e.g., an EV battery assembly
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plant).

Resource consumption
• Concerns around electricity consumption and impact on rates are
not an issue for a site that would be developed in Ionia because
the electrical load isn’t massive like a hyperscale data center.
• Groundwater withdrawal and discharge of used water is regulated
by EGLE, discharge into sewer and wastewater systems is
managed by the local water utility system itself.
• Ionia has a lot of capacity in its public water and sewer services
due to the loss of local prisons – The public water system only
operates at an averaged of 26% of its capacity; the water
treatment facility is only working at 43% of its capacity.
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Community and Health Impacts
• Land use pressure on surrounding areas
• Very large data centers can have negative impact on surrounding real estate values,

but new research shows that non-hyperscale data centers generally don’t, usually
because of their location in industrial and business parks.

• Noise, light, and traffic during construction; noise and light during
operation.
• Public health issues related to noise and pollution
• There is quite a bit of concern around noise pollution, which is a very real concern for

hyperscale data centers, though less of a concern for a facility that could be built in
Ionia
• I’ll address noise issues and what to do about them later in the presentation
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Are there any ways that communities can
benefit from data centers?

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Economic Development Impacts
Employment
• Construction jobs are real
and well-paid. Possible to
negotiate to ensure hiring of
regional and union labor.
• Permanent jobs are limited

Other Economic Impacts
• Property tax capture can be very
beneficial to local communities.
• Real opportunity for local
businesses to capture benefits
during construction.
• We are unsure what real, longterm benefits might look like and
what future spillover effects may
appear.
• For example, will data centers
encourage other forms of tech

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Supporting local infrastructure
• Data centers could be very beneficial to communities like Ionia
who built out infrastructure (e.g., water and sewer) to meet the
demands of industries that are now in decline or have
disappeared (e.g., the case of prison closures).
• Infrastructure has to be maintained, even if it’s not being used.
Right now, that maintenance gets spread across existing utility
users.
• Bringing on a large commercial user, like a data center, that uses
a lot of water would be very beneficial to the maintenance of
existing infrastructure and would lower the future costs of
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How should communities prepare for a potential
data center proposal?

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Many of the concerns created by data centers can be
addressed through careful planning if a community
wants to pursue data center development or if they
find themselves in an uneven relationship with a
developer.

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Ionia’s Zoning
• Ionia has a “T Technology Innovation Business District,” passed in December
of 2024, which includes data centers as a regulated land use.
• This ordinance already includes regulations on:
Air quality
• Setback requirements of 20’ or more (much more for borders with residential land)
• Landscaping and screening
•

• Landscape buffer of 10’ on property lines adjacent residential areas
• Fence or wall minimum of 6’ on property lines abutting residential areas
• Screening of outdoor storage
•

Noise
• “All loud or unusual noises or sounds and annoying vibrations which offend the peace and quiet of persons
of ordinary sensibilities are hereby declared to be public nuisances.” Ordinance 664.03

•

Vibration
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To address data centers in particular
• Special Land Use as part of the T designation that allows for
some more specific targeting around:
• Noise
• Landscaping and screening
• Exterior lighting
• Setbacks
• Usage of back-up generators and behind the meter generation
• Decommissioning

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Modifying industrial zoning
• Noise
•

Needs to be made more explicit and inclusive of both dBA and dBC weighting. This will help
ensure that the loud humming that can happen at data centers that aren’t well managed is
punishable (though as I noted earlier, this is less of a concern in small and medium sized
facilities).

• Landscaping and screening
•

Earth berms along property lines adjacent and abutting residential (fences, walls, and
traditional landscape buffers are not enough)

• Exterior lighting
•

Dark sky friendly

• Setbacks
•

Variable depending on footprint, but something like a 40 acre site should likely be 100’ from
general property lines, 200’ from residential
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Modifying industrial zoning
• Usage of back-up generators
• Limiting the timing and length of testing

• Behind the meter generation
• Inappropriate for T district, should be restricted.

• Decommissioning
• What happens when this facility ceases operation?
• The infrastructure that gets left behind
• The building
• Any waste
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Modifying industrial zoning
Examples to turn to:
• Negaunee (just passed their zoning a few weeks ago)
• Van Buren Township (already had pretty robust zoning to
address some of these issues)
• Gaines Township (are currently modifying theirs, but I bet
their planners would be willing to share)

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Additional Resources
Where can you start to educate yourself on these issues as a local elected official or
community leader?

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Preparing for future digital infrastructure
The communities that are best positioned for the next wave of digital infrastructure
are the ones that decided what they wanted before anyone asked them.

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Use this as an opportunity to engage your community
on what industrial development should/could look like
in Ionia. This isn’t the first land use and zoning
controversy we have seen in Michigan and definitely
won’t be the last.

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Thank you
Contact information
• [email protected]
I’m sticking around and am happy to talk with anyone after the
meeting concludes.

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Michigan,
you can count on us
Powering Michigan’s Growth

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Serving Michigan’s
Growing Energy Needs
•

•

•

•

Data centers, advanced manufacturers and
other large customers
Energy readiness is critical to attracting and
retaining investment
140 years of experience delivering the energy
Michigan needs
Serving Michigan’s growing energy needs for
the long haul

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Data Center Energy Myth Busters
Rumor:

Rumor:

Rumor:

Data centers will
require more power
than Consumers
Energy can produce.

Data centers will
negatively affect
reliability.

Data center
infrastructure costs will
increase customers’
bills.

Reality:

Reality:

Reality:

Consumers Energy has
capacity today and will
add resources to
support data centers
as they come online.

Infrastructure
investments made by
data centers can
contribute to
improved reliability for
all local customers.

Data centers won’t
raise rates. Large
customers will pay
their fair share of
infrastructure and
supply costs.

3

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Ensuring Reliable & Secure Energy Supply
Michigan Electric
Transmission
Company (METC)

Midcontinent
Independent System
Operator (MISO)

Federal Energy
Regulatory
Commission (FERC)

LOCAL UTILITY:
Initiates request review.
Connects customers to
the grid.

TRANSMISSION OWNER:
Analyzes high-voltage
network impact. Builds
and maintains long
distance lines.

REGIONAL OPERATOR:
Manages the grid across
many states. Plans for
long-term supply and
coordinates reliability.

FEDERAL REGULATOR:
Approves the Tariff that
MISO uses to evaluate
transmission projects and
energy sufficiency.

First check:
Local grid impact

Second check:
System capacity and
constraints.

Third check:
Regional coordination and
market-wide sufficiency

Oversight:
Federal oversight
and fair rules.

Consumers Energy

NEW SERVICE
REQUEST
(like new data center,
factory or housing)

. NO NEW LOAD WITHOUT ADEQUATE SUPPLY & SYSTEM PROTECTION ..

This system of “checks and balances” ensures available and reliable power for all.

4

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Data Centers Can Boost Reliability
•

Reliability comes first. No new customer
is connected unless our engineering
studies confirm the system can handle
the demand without impacting homes
and small businesses.

•

We have a proven process in place to
carefully validate every large load request,
one that reflects national best practices
and ensures reliability for all customers.

•

Our dedicated team of experts reviews
every project in detail, bringing decades
of planning and operational experience to
make sure new growth is responsibly
integrated into the grid.

Image used for illustrative purposes only; not intended as a literal representation of the electric system.

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Strengthening the Grid in Ionia County
2025-27 Reliability Investments

LVD investment by calendar year — $9.0M

High Voltage Distribution (HVD) Investments:
•
2025-2027 $8.4M
o Substation rebuilds & equipment
o Animal mitigation
o Load carrying capability & voltage support
Low Voltage Distribution (LVD) Investments:
•
2025-2027 $9.0M
o Undergrounding
o Circuit inspection follow-up work
o Line improvements/ Pole replacements
o Load transfer switching to reduce outage
duration

$4.9M

$2.5M
$1.6M

2025

2026

2027

Total Grid Strengthening Investment of $17.4M

6

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Reliability Performance in Ionia County
Power Availability, 2022-2026 YTD Average percent of year power was available
100.00

Power is available more than 99.9% of the year
Excluding major storms, availability has stayed
at or above 99.94% every year
Major storms drive nearly all of the variation,
most visibly in 2023
Performance is trending up
Storm-inclusive availability has recovered from
99.68% in 2023 to 99.87% in 2026 YTD
Continued grid investment is designed to
keep that trend going

99.95
99.90
99.85
99.80
99.75
99.70
99.65
99.60

2022

2023

Excluding major storms

2024

2025

2026 YTD
(Aug)

Including major storms

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Growth and Affordability for Michigan
More demand on the grid means lower costs for all customers — and a stronger Michigan for
everyone.
Lower Customer Bills

↑ Demand

↓ Cost

$ Less

Growth on the Grid

Fixed Costs Spread Wider

Affordability for All

New businesses, data centers &
industry add load

Same infrastructure, shared by more
— cost per customer drops

Every Michigan customer benefits
from lower bills

A Stronger Michigan
Job Creation
New businesses and industries
attracted to Michigan create
thousands of quality jobs —
strengthening communities across
the state.

Stronger Tax Base

Talent & Opportunity

Economic growth expands the tax

A growing Michigan economy retains

base — generating revenue that funds

and attracts skilled talent — creating a

schools, roads, and public services for

virtuous cycle of innovation,

all Michigan residents.

investment, and prosperity.

Our analysis shows that for every 1 GW of new large load growth added to the system all customers will save $7.50/month on their bill.
We have strong energy protections in place and layers of oversight to ensure data center load growth is a benefit to all.

8

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Data Centers Will Not Raise Your Rates
State Regulation Ensures
Rates are Cost Based

Consumers Energy’s Tariff
Ensures No Cost Shifting

Utility rates are established
through transparent legal
proceedings and must be
approved by State
regulators. All rates must
reflect the actual cost of
providing service ensuring
customers are not forced to
subsidize another customer.

The Large Load tariff requires
data centers to pay for ALL
their costs in full. It is based on
industry best practices to
ensure existing customers are
protected from cost shifting
and not forced to pay
stranded costs if new, large
load does not stay for the
duration of a contract.

State Tax Credits Reinforce
Customer Protections

To take advantage of
Michigan sales and use tax
credits passed in 2024, data
centers are required to pay
the costs associated with
providing energy service to
their facilities. The law also
explicitly bars data centers
from shifting costs to
residential customers.

9
Michigan customers have several layers of protections to safeguard affordability.
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Approved Data Center Tariff: MPSC Case No. U-21859

1.

2.

3.

What the Protections Mean

How the Protections Work

Existing customers WON’T PAY for
energy infrastructure or supply serving
data centers.

Data Centers are required to:
 Pay for upfront engineering and planning costs.

Existing customers WON’T PAY for the
energy data centers use.
Existing customers WON’T PAY if data
centers leave early.

 Provide upfront collateral to ensure
infrastructure investments are paid for.
 Pay ALL costs for their energy use and
infrastructure — even if promised projects don’t
materialize or they leave early.
 Sign a long-term, 15-year contract with default
collateral provisions ensuring our customers are
protected from cost shifting.
 Pay for 80% of the capacity they ask us to supply,
regardless of their use.

To be granted approval, Consumers Energy is required to prove each project meets all MPSC regulations,
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covers 100% of its costs, and will not raise customer rates.

Consumers Energy’s Data Center Information Hub
Scan the QR code to open the Information Hub:

Our public-facing resources and educational
materials provide clear, fact-based insights
into how growth projects are evaluated, how
rates are protected, and how we have systems
and plans in place to safely, reliably, and
affordably serve communities across Michigan.

11

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Counting the ways
you can count on us

12

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We Have the Energy Supply

LOAD

Electric Demand

January

March

May

July

September

November

December

13

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We Have the Energy Supply

LOAD

Electric Demand
CE Electric Capacity

January

March

May

July

September

We always have headroom, and we add capacity as load grows.

November

December

14

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We Have the Energy Supply

LOAD

Electric Demand
CE Electric Capacity

January

March

May

July

September

November

Our #1-ranked energy efficiency program cuts system load 1-2% every year,
freeing capacity without building it.

December

15

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We Have the Energy Supply

LOAD

Electric Demand
CE Electric Capacity

January

March

May

July

September

November

Opportunities for growth now & increasing supply for the future.

December

16

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Electric & Natural Gas Systems

6.8 Million

Michiganders count on us
for service

8.1 Thousand
Workforce consisting of
employees and contractors

+140 Years
Serving Michigan

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