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The Data Center Divide

Village of Lincoln

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 Lincoln.

pending · Village of Lincoln
Would require data centers to obtain special-use approval in industrial districts and meet rules for siting, noise, water, safety, environmental review, emergency response, and decommissioning.Village of Lincoln Ordinance No. ___-2026: An Ordinance to Amend the Village of Lincoln Zoning Ordinance Concerning Data Centers (draft)

What this means

If enacted, this would allow data centers in the industrial district, but only with special-use approval and substantial requirements, including 150-foot setbacks and detailed impact and emergency plans. The required decommissioning guarantee and operating standards would add meaningful cost and effort, creating significant barriers without banning development.

People behind it

  • Proposed the zoning ordinance amendment and is responsible for holding the public hearing and recommending its adoption to the Village Council.

  • The municipal legislative body responsible for adopting and enacting the zoning ordinance amendment.

Restrictions & requirementsHide restrictions & requirements31
  • Data centers are allowed only as a special use in the Industrial District, requiring a Special Use Permit rather than being permitted by right.

  • A site plan and additional application materials are required, including cooling-equipment specifications, sound modeling, an Emergency Response Plan, a decommissioning plan, and any other information required by the Planning Commission.

  • Principal buildings, accessory structures including battery storage systems, and data-center substations must be set back at least 150 feet from every adjacent lot line.

  • Year-round opaque landscaping, a screening fence, or a wall is required to reduce visual impacts.

  • Noise may not exceed 55 dBA from 7:00 a.m. to 7:00 p.m. or 45 dBA from 7:00 p.m. to 7:00 a.m., measured at specified property lines or sensitive land uses.

  • Applicants must submit a pre-development sound-modeling study, and the Planning Commission may require additional sound-attenuation measures.

  • Data centers may not generate ground-borne vibration exceeding 0.01 inches per second at any point along the property line; additional vibration modeling or measurements may be required.

  • Air, dust, smoke, glare, exhaust, heat, and humidity may not be perceptible at or beyond the lot line.

  • Lighting, including security-camera lighting, may not create a nuisance for adjacent lots, drivers, or pedestrians.

  • A closed-loop cooling system must be used if feasible; an alternative requires justification and proof that it will not negatively affect the surrounding area or the Village's water supply.

  • On-site battery energy storage systems must comply with all applicable local, state, and federal fire, electrical, building, and environmental laws, codes, permits, and regulations, with documentation of applicable standards and compliance.

  • Routine generator testing is limited to 9:00 a.m. to 5:00 p.m., Monday through Friday, excluding federal and state holidays, subject to exceptions for outages, emergencies, utility-directed events, or other emergency conditions.

  • No more than two generators may be routinely tested at the same time unless the applicant demonstrates compliance with the ordinance's noise standards.

  • Generators must have appropriate acoustic, vibration, or other mitigation measures, and the application must identify their number, locations, fuel sources, capacities, and testing schedules.

  • Before approval of a certificate of completion or occupancy, the applicant must obtain written utility-provider verification that electrical infrastructure, cooling systems, and other operating utilities are adequate and will not negatively affect the surrounding area.

  • The application must state the facility's required water and electricity quantities, and the Planning Commission may require the operator to supply electricity on site.

  • Before occupancy approval, the applicant must provide written verification that the electrical work passed a third-party final inspection.

  • Data centers must provide 24-hour emergency-contact signage at the access entrance listing the company, owner or representative, telephone number, and local power company contact information.

  • Before the public hearing, the applicant must provide an environmental and community impact analysis covering operations, traffic, materials, nearby environmental and cultural resources, waste and wastewater, and impacts on emergency services, water, sewage, solid waste, electricity rates, schools, and municipal finances.

  • The Planning Commission may require additional studies related to the ordinance's standards, including studies prepared by a qualified third party at the applicant's expense.

  • An Emergency Response Plan must be approved and provided to local fire, code, and emergency officials, maintained at accessible on-site and off-site locations, and include emergency procedures, training, drills, routes, and an assessment of local response capacity.

  • The applicant must offer or fund site-specific training drills with local emergency services before operation and at least annually while the facility operates.

  • An Emergency Response Plan must be reviewed and updated with local emergency services at least once every three years.

  • A decommissioning plan is required at application, including the project's anticipated life, removal and restoration methods, projected costs, and funding arrangements.

  • The owner or operator must maintain a performance guarantee equal to 1.25 times the estimated decommissioning cost, with the amount reviewed every five years.

  • A post-construction sound survey by a Planning Commission-selected third-party professional, paid for by the owner, must be submitted within six months after operations begin.

  • The Planning Commission may require annual compliance reports, including reports on water usage, sound monitoring, and generator testing and operating hours.

  • The Village must receive written notice at least 60 days before a transfer of ownership or operational control, and the successor must accept all permits, plans, conditions, reporting duties, and financial assurances.

  • A data center that has not operated continuously for 12 months is deemed abandoned and must be removed within 180 days after Village notice, unless the Planning Commission grants an extension.

  • Unless an alternative decommissioning plan is approved, abandonment requires restoration of the site, including environmental remediation, removal of foundations to at least five feet below final grade, and restoration of vegetation.

  • The ordinance's data-center requirements do not apply to accessory data operations only when the equipment is inside a conforming building, has no materially different impacts, and requires no additional utility infrastructure or provider approval; otherwise, the full data-center requirements apply.

Benefits & exceptionsHide benefits & exceptions6
  • Data centers are added as a special use in the Industrial District, allowing them to be proposed there through the special-use approval process rather than being prohibited.

  • Accessory data-processing, data-storage, or server equipment is exempt from the data-center requirements when it is inside a conforming building, has no materially different impacts from the principal use, and needs no additional utility infrastructure or provider approval.

  • A battery energy storage system may be permitted as an accessory use to a data center, provided it complies with applicable local, state, and federal requirements.

  • An alternative to a closed-loop cooling system is allowed when closed-loop cooling is not feasible, if the applicant demonstrates why it is necessary and shows that it will not negatively affect the surrounding area.

  • An on-site electrical substation serving a data center may be located beside or behind the data-center building, and no buffer or screening is required between the building and that on-site substation, although the substation must remain screened from public view.

  • Backup generators may be routinely tested from 9:00 a.m. to 5:00 p.m. Monday through Friday, excluding federal and state holidays; the ordinance also allows operation during power outages, emergencies, utility-directed events, or other conditions requiring emergency operation.

Sources

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