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The Data Center Divide

City of Charlevoix

Mixed Data Center Policies

Michigan offers equipment tax breaks to qualifying data centers, but some require major investment, job, water, and clean-energy commitments. Large electricity users also face separate rates, fees, and cost reviews; some must accept long contracts and minimum payments.

Rating and summary from Michigan statewide as there are no scored current or future laws outside temporary restrictions for City of Charlevoix.

pending · City of Charlevoix
Requires data centers up to 10 MW to obtain special-use approval in Charlevoix’s industrial district and meet detailed requirements for noise, safety, environmental review, utilities, community engagement, and eventual decommissioning.Michigan City of Charlevoix Draft Data Center Ordinance (2026)

What this means

As proposed, the ordinance would limit data centers to special-use approval in industrial areas and expressly allow only facilities up to 10 MW, making siting and approval difficult (“up to 10MW” in the Industrial district). Applicants would also face extensive studies and operating conditions, including a 45 dBA noise limit, $5 million in insurance, and financial security for cleanup, creating substantial costs and hurdles (“45 dBA” noise limit).

People behind it

  • Municipal government proposing and enacting the ordinance regulating cryptocurrency data mining facilities and data centers.

  • Legislative body responsible for adopting the ordinance and setting related fees and escrow amounts.

  • City Clerk who certified the ordinance's adoption.

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  • City Mayor who authenticated the ordinance.

  • City department responsible for administering zoning and land-use matters governed by the ordinance.

Restrictions & requirementsHide restrictions & requirements36
  • Cryptocurrency data mining facilities and data centers up to 10 MW are allowed only as a special land use in the Industrial zoning district, requiring special-use approval rather than ordinary permitted-use approval.

  • An ancillary data center in a non-residential district is allowed only if it occupies no more than 10% of the building footprint, serves only the on-site owner's enterprise functions, is not leased to third parties, and is not in a separate stand-alone structure.

  • Applicants must obtain special land-use approval in addition to site-plan approval and pay an application fee set by City Council resolution.

  • Special-land-use applications must identify every parcel used by the facility and provide ownership records, leases, easements, purchase agreements, an operations agreement, current property photographs, and a compliant site plan showing the grid connection.

  • Applicants must submit plans covering property maintenance, drainage inspections, stormwater management, anticipated water use, wastewater discharge, hazardous-waste management, power-outage response, security, fire protection, transportation, public complaints, and infrastructure impacts.

  • Applicants must provide utility-capacity documentation showing sufficient electrical, water, and wastewater capacity without compromising existing needs or causing rate increases for existing customers.

  • The application must include environmental-compliance proof and analyses of potential effects on wetlands, streams, woodlands, wildlife habitat, air quality, groundwater, wells, aquifers, and surface waters.

  • Applicants must submit a community and environmental impact statement addressing emergency services, roads, water resources, noise, vibration, air emissions, land-use compatibility, and visual impacts, along with any additional information requested by City officials.

  • Applicants must deposit money into a City escrow account for review costs, including attorney, planner, engineer, report, and study costs; the City may require additional deposits, and review stops if the applicant does not replenish the escrow within 14 days of notice.

  • Stationary and backup energy systems must comply with EPA and EGLE air-emission standards, diesel generators must meet current EPA Tier 4 standards, and battery energy-storage systems must comply with NFPA 855.

  • The applicant must provide a noise study demonstrating compliance at all property lines and a traffic-impact study prepared by a qualified professional engineer.

  • All facility equipment must be housed in metered, electrically grounded, pre-engineered or prefabricated structures with a fire rating capable of resisting an internal electrical fire for at least one hour.

  • Prefabricated, pre-engineered, or modular structures must have concrete foundations, muted earth-tone exterior colors, and compliant construction; intermodal shipping containers must comply with the current National Electrical Code.

  • Lighting is limited to the minimum needed for safe operation, must be fully shielded and directed downward, may not extend beyond the lot perimeter, and may not create visible glare on neighboring property or public or private roads.

  • Security fencing is required around all related electrical equipment, must be at least six feet high, and must use screening, landscaping, and materials that blend with the surrounding environment.

  • On-site electrical substations must be located to minimize visual impacts and screened for year-round opacity from public roads and adjacent residential properties.

  • Facility noise, including generator noise, may not exceed 45 dBA at any adjacent property line and may not exceed baseline ambient noise levels; sound walls, enclosures, or other mitigation may be required.

  • Generator testing is permitted only Monday through Friday from 9:00 a.m. to 5:00 p.m.

  • Data center operators must conduct annual peak-operation noise studies for five years at the nearest planned or zoned residential or other noise-sensitive property and submit each result to the City within 30 days of the certificate anniversary.

  • Ground-transmitted vibration may not exceed the specified frequency-based particle-velocity limits at the nearest adjacent lot line; the City may require third-party vibration testing at the petitioner's expense.

  • Power transmission and other lines, wires, or conduits between the facility and buildings must generally be underground at National Electrical Code-compliant depth, except in switchyards or substations.

  • Operators must inspect all drain piping at least once every three years using a robotic camera, beginning before operation, repair discovered damage within 60 days, and provide inspection and repair proof to the City.

  • Stormwater facilities must comply with City and Charlevoix County standards.

  • Before construction begins, the applicable fire department must approve the fire-protection plan; the fire chief may require modifications, and an appeal goes to the Planning Commission.

  • Facilities must maintain an internal fire-suppression system tested at least annually by a third-party contractor approved by the fire chief and must provide City fire personnel or contractors with appropriate equipment and training.

  • The applicant or operator must maintain at least $5 million per occurrence in property/casualty and general commercial liability insurance and name the City as an additional insured.

  • All required county, state, and federal permits must be obtained before operation, and a building permit is required even when the applicant or operator might otherwise be exempt under state law.

  • Before an Industrial-zoned data center is constructed, the operator must hold two neighborhood meetings, mail notice to residents and homeowners associations within 2,000 feet, have a decision-making project representative attend, and post an approved 16-square-foot sign at least 15 days before each meeting.

  • Before the first neighborhood meeting for an Industrial-zoned data center, the property owner must obtain a third-party baseline sound study at the nearest planned or zoned residential or other noise-sensitive property and provide it to the City.

  • A facility abandoned or nonoperational for one year must be removed within six months after abandonment, with a demolition permit and full site restoration; the same rule applies to construction halted for one year.

  • Applicants must post financial security equal to 125% of the estimated decommissioning, code-enforcement, and reclamation costs within 15 business days after special-use approval, with the amount reviewed every two years.

  • The City must be notified within 24 hours of a failure, fire, hazardous-material leak, personal injury, or other extraordinary or catastrophic event.

  • Operators must submit an annual report by January 1 containing current insurance proof, financial-security verification, and a summary of complaints, resolutions, and extraordinary events.

  • The City may inspect a facility at any time with 24 hours' advance notice.

  • A transferred conditional land-use permit requires the new owner to register its name and business address with the City 30 days before transfer and comply with all ordinance requirements and City conditions; the existing security bond or escrow must remain in place.

  • For noncompliance, the City may seek abatement, recover costs and attorney fees, and require removal of the cryptocurrency mining facility or data center.

Benefits & exceptionsHide benefits & exceptions3
  • Cryptocurrency data-mining facilities and data centers using up to 10 MW are allowed as special land uses in the Industrial zoning district, subject to the ordinance’s application and approval requirements.

  • An ancillary data center may operate in a non-residential zoning district if it occupies no more than 10% of the building footprint, serves only the on-site property owner’s enterprise functions rather than third-party customers, and is not located in a separate stand-alone structure.

  • A conditional land-use permit for a cryptocurrency data-mining facility or data center may be transferred to a new owner, provided the new owner registers with the City at least 30 days before the transfer and complies with the ordinance and existing approvals and conditions.

Sources

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