Village of Lake Isabella
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 Village of Lake Isabella.
pending · Village of Lake IsabellaWould prohibit data centers larger than 10,000 square feet and allow smaller ones only in the Industrial District with special approval and operating requirements; the ordinance is still proposed.Michigan Proposed Ordinance 2026-04 (2026)
What this means
If enacted, the measure would prohibit large and hyperscale data centers across the Village and allow smaller ones only in the Industrial District with special approval and strict limits. Required studies, environmental and noise rules, and other conditions would make the projects that remain eligible substantially harder and more costly to build and operate.
Timing
- Ends
- through the 2026-11-17 Village Council meeting
The Village Council established a temporary moratorium on data centers through the November 17, 2026 Village Council meeting. A later packet refers to the moratorium but does not restate its expiration condition; the proposed data-center ordinance remains under review.
People behind it
- Councilmember Peavey
Introduced Proposed Ordinance 2026-02 and the seasonal weight-restriction ordinance.
- Councilmember Carol Shannon
Offered Proposed Ordinance 2026-03, the Park Entrance Adjacent Lots ordinance.
- Senator Runestad
Introduced legislation establishing a one-year moratorium related to data centers.
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- Lake Isabella Planning Commission
Developed, reviewed, and recommended proposed ordinances, including the data center regulations and Proposed Ordinances 2026-03 and 2026-04.
- Village staff
Prepared the draft data center regulations ordinance, conducted research, and recommended its introduction and public hearing.
- Interim Village Manager Jessica Manley
Presented Proposed Ordinance 2026-04 and proposed additional revisions for Village Council consideration.
- Village Council
Responsible for introducing and considering adoption of Proposed Ordinance 2026-04 and for approving zoning ordinances and amendments.
- Zoning Administrator
Administers and enforces the Zoning Code, including issuing permits, conducting inspections, and reviewing zoning applications.
- Village Clerk
Publishes notices of zoning ordinance adoption and processes specified zoning applications and fees.
Restrictions & requirementsHide restrictions & requirements45
A temporary moratorium prohibits data centers through the Village Council meeting on November 17, 2026.
Small-scale data centers may be located only in the Industrial District and require Special Land Use approval, Planning Commission review, and applicable site-plan approval.
A Special Land Use requires a public hearing, may be approved, conditioned, or denied, and must be established within nine months; it becomes void after 12 months of discontinuance.
Data centers are prohibited in Residential, Commercial, Mixed-Use, Agricultural, and shoreline-related zoning districts.
Large-scale or hyperscale data centers are prohibited throughout the Village. The threshold is more than 10,000 square feet of gross floor area or a design for phased expansion beyond 10,000 square feet.
A small-scale data center may not exceed 10,000 square feet of cumulative gross floor area, 5,000 square feet of computer floor area, or 1 megawatt of maximum electrical demand.
Applicants may not evade the size or other restrictions through phased development, multiple parcels, campus development, affiliated ownership, building segmentation, successive applications, ownership transfers, leases, or similar arrangements.
Each data center requires separate Special Land Use approval; approval of one facility does not authorize additional buildings, campuses, expansions, or intensified use.
A data center must be located on a single parcel of at least five acres, and multiple parcels may not be combined to satisfy the minimum area.
Data center buildings must be at least 75 feet from front and rear property lines and 50 feet from side property lines, with an additional 50-foot buffer next to residential zoning or sensitive receptors.
Data center buildings may not exceed 35 feet in height.
Data centers may not be located in floodplains, wetlands, shoreline setback areas, or environmentally sensitive areas.
Cooling must use closed-loop, non-consumptive technology or another approved technology that does not normally withdraw surface water or groundwater or discharge cooling or process water.
Data centers may not use Lake Isabella, the Chippewa River, tributaries, wetlands, or other surface water for cooling or processing, and groundwater use is prohibited when it could adversely affect specified water resources, nearby wells, groundwater, or water quality.
Discharge of heated water, process water, industrial wastewater, or cooling water into Lake Isabella, tributaries, wetlands, or groundwater is prohibited.
Applicants must demonstrate that electric, water, wastewater, broadband, transportation, and emergency-service infrastructure can support the facility without reducing existing service or requiring upgrades at public expense.
Applicants must obtain written confirmation from the electric utility that sufficient capacity exists without harming system reliability or service to existing customers.
Utility lines serving a data center must generally be installed underground unless the Planning Commission approves otherwise.
Applicants must submit engineering, utility, stormwater, environmental, water, traffic, acoustical, emergency-response, wastewater, or other technical studies required by the Village, and may be required to pay for those studies.
Applicants must submit operations, fire-protection, emergency-response, hazardous-material, complaint-response, stormwater, spill-prevention, environmental-impact, and wildlife-habitat documentation before construction or operation as applicable.
Mechanical, cooling, generator, electrical, utility, rooftop, and similar equipment must be screened from public view, and outdoor storage is prohibited unless specifically approved and fully screened.
Security fencing must meet architectural and screening requirements; barbed wire and razor wire are prohibited unless required by state or federal law.
Noise may not exceed 55 dBA at any property line or 45 dBA at a residential property line, and may not exceed 65 dBC at any property line or 60 dBC at a property line adjoining residential zoning.
Before Special Land Use approval, applicants must provide an independent acoustical study covering dBA, dBC, low-frequency, and tonal noise; a second independent study is required within six months after operations begin, at the applicant's or operator's expense.
Vibration from data-center operations may not be perceptible beyond the property boundaries.
Exterior lighting must use full-cutoff, downward-directed fixtures, illuminate only areas needed for safety and security, and avoid measurable light trespass onto adjacent properties.
A landscaped buffer at least 30 feet wide is required next to residential zoning districts or sensitive receptors.
Backup generators must comply with applicable EPA, EGLE, state, and other regulations and may be tested only during daytime hours except during emergencies.
Battery energy storage systems must comply with applicable building, fire, electrical, environmental, life-safety, manufacturer, and industry standards.
Fuels, coolants, batteries, chemicals, fire-suppression agents, and other potentially contaminating materials require approved handling and spill-prevention procedures, secondary containment, and any required emergency containment or drainage systems.
The Village may require ongoing groundwater, surface-water, noise, or other environmental monitoring, compliance certifications, and supporting documentation, and may inspect the property at reasonable times.
Owners or operators must take corrective measures for adverse impacts, promptly report specified fires, explosions, releases, equipment failures, or other qualifying emergencies, and submit a written report within 10 business days.
Before construction, the applicant must execute a Village-approved indemnification agreement covering claims, damages, liabilities, and costs related to the facility, subject to the stated gross-negligence and willful-misconduct exception.
Before a building permit is issued, the applicant must provide a decommissioning plan and a financial guarantee covering decommissioning, site restoration, environmental remediation, and administrative costs.
The financial guarantee must remain in effect for the facility's life and be reviewed at least every five years and adjusted for current costs and inflation.
A data center is considered abandoned after 12 continuous months without operations, excluding approved repairs, maintenance, upgrades, or qualifying shutdowns; after notice, the owner must submit a decommissioning schedule within 90 days and generally complete decommissioning within 12 months after approval.
If the owner fails to decommission the facility on time, the Village may use the financial guarantee to complete the work and recover administrative expenses.
Ownership or operational transfers do not eliminate compliance, maintenance, financial-assurance, or decommissioning obligations, and transfers must be reported to the Village within 30 days.
Construction, expansion, reconstruction, or changes in use require a zoning permit, site-plan approval where applicable, and all required local, county, state, and federal permits before construction or operation.
Approved site plans expire after one year unless a building permit has been issued and construction has commenced; the Planning Commission may grant only one six-month extension.
If classified in the Research & Light Manufacturing District, new structures of at least 10,000 square feet must achieve LEED Certified status, with similar requirements for expansions that reach or exceed 10,000 square feet.
Development in the Research & Light Manufacturing District is subject to minimum parcel size, minimum lot width, setback, maximum height, maximum structure-coverage, landscaping, enclosure, noise, odor, vibration, smoke, glare, heat, and dust requirements.
Site-plan review may require stormwater storage or infiltration facilities, limits allowable outflow to 0.15 cubic feet per second per acre, requires a 10 percent detention-storage safety factor, and generally limits soil disturbance to 60 percent of the site.
The Village may require a performance guarantee for site-plan or permit improvements and conditions, and zoning, site-plan, Special Land Use, variance, appeal, rezoning, public-hearing, and other application fees apply.
The Village Council may impose a moratorium of up to one year on a use, activity, building, or structure, during which new or expanded data-center operations and related permits, approvals, or licenses may be prohibited or withheld.
Benefits & exceptionsHide benefits & exceptions15
Small-scale data centers may seek Special Land Use approval in the Industrial District, subject to Planning Commission review, site-plan requirements, and applicable zoning standards; they are prohibited in residential, commercial, mixed-use, agricultural, and shoreline-related districts.
The qualifying small-scale facility may not exceed 10,000 square feet of total gross floor area, 5,000 square feet of computer floor area, or 1 megawatt of electrical demand. Large-scale and hyperscale facilities remain prohibited.
In the Research & Light Manufacturing District, a data center classified as a Research Facility may obtain special-land-use approval, while a Warehouse, Distribution use is permitted by right.
Cooling may use closed-loop, non-consumptive technology or another technology approved by the Planning Commission if normal cooling requires no surface-water or groundwater withdrawal and produces no cooling-water or process-water discharge.
Ordinary domestic, sanitary, cleaning, drinking, maintenance, and emergency fire-protection water uses are allowed and are not treated as prohibited process or cooling water.
The Planning Commission may waive or reduce an Environmental Impact Statement requirement when it determines that the facility will have minimal environmental impacts based on its size, location, and characteristics.
Backup generators are allowed if they comply with applicable EPA, EGLE, and state requirements; testing is limited to daytime hours except during emergencies.
Battery Energy Storage Systems may be installed, operated, maintained, and monitored in association with a data center if they comply with applicable building, fire, electrical, environmental, life-safety, and industry standards.
In the Research & Light Manufacturing District, a new primary structure requires a Detailed Site Plan, but a single-story accessory structure of 2,500 square feet or less may be approved by the Zoning Administrator instead of requiring Planning Commission approval; accessory structures may generally be up to 5,000 square feet subject to district height and number limits.
A Planned Unit Development may be applied for in any zoning district and may modify, waive, decrease, or increase zoning standards, subject to conditions protecting health, safety, welfare, natural resources, and neighboring properties.
Essential public services, including public utility distribution, transmission, and related facilities, may be erected, constructed, altered, or maintained in any zoning district when reasonably necessary for public health, safety, or welfare; above-grade buildings and structures remain subject to zoning design requirements and Planning Commission approval.
A lawfully established data-center use may continue if later made nonconforming by a zoning amendment.
Outside residential districts, a nonconforming use may be expanded throughout the structure in which it is conducted, but a nonconforming use outside a structure may not expand onto land that was not in use when the nonconformity arose.
A lawful nonconforming structure or use damaged by casualty may be rebuilt or restored to its prior size when restoration costs do not exceed 50% of the appraised replacement cost, subject to additional reconstruction limits when costs exceed 100% of pre-damage equalized value.
Conditional rezoning is allowed, and the Planning Commission or Village Council may not require an applicant to offer conditions that the applicant has not volunteered.
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