Deep Green project can strengthen Lansing’s future

We support having Deep Green, a leader in sustainable computing infrastructure, work in partnership with the Lansing Board of Water & Light to create a small-scale data center on E. Kalamazoo Street that is thoughtfully informed by community input.

Like many others, we are unnerved by the rapid and unconstrained growth of artificial intelligence. That concern is real. But the need for computing infrastructure is not going away. Every sector we rely on — health care, engineering, finance, higher education, advanced manufacturing — depends on secure, physical data facilities. Avoiding that reality will not slow demand; it will simply shift investment elsewhere. Deep Green’s model appears scale-appropriate for Lansing’s needs.

It is important to distinguish this proposal from the hyperscale facilities making headlines in Saline Township and elsewhere. The proposed Deep Green model is dramatically smaller. What is being discussed for Lansing is not the kind of data center designed to serve global AI giants. Deep Green anticipates that their five to fifteen clients will likely be regional engineering firms, pharmaceutical companies, and university researchers with high computational modeling needs. That is a fundamentally different profile.

While it is true that data centers, once opened, do not employ large numbers of people, economic development is not measured solely by permanent headcount. Construction jobs are real jobs, often skilled trades that provide good wages without requiring a four-year degree. Beyond that, infrastructure investments strengthen our tax base and signal that Lansing can support 21st-century industry. 

We are especially encouraged by Deep Green’s plans for a closed-loop system that will cool the computers by transferring the otherwise wasted heat into a hot water system that will serve buildings in the downtown area. This has the effect of cutting carbon emissions and potentially reducing energy costs for downtown businesses. In Europe, waste-heat recycling is far more common; in the United States, we lag behind. Deep Green has a track record of waste heat recovery and use in the UK. 

We have also been assured that installation of the data center will not increase rates for any other BWL customers and that all infrastructure costs will be absorbed by Deep Green. 

Concerns about noise have been raised at several gatherings we have attended. Deep Green representatives have assured participants that they will take necessary steps to mute production sounds. Those commitments should be written clearly into any final agreement. That is how good governance works: identify concerns, negotiate protections and hold partners accountable.

The fuel cell technology being considered would be the first of its kind in Michigan and, if designated as “clean energy” by the state, would help BWL reach its clean energy requirements. In further negotiations, city council members and the community should explore additional ways this project might accelerate renewable energy development in our region. If Lansing wants influence over its energy future, participation is more effective than opting out.

Regarding the location on E. Kalamazoo between Cedar and Larch, we believe this edge-of-downtown site makes sense. In theory, any parcel could host housing, retail, entertainment or green space. In practice, projects require market demand, financing and committed developers. If shovel-ready, mixed-use proposals were in place, they would be visible. In the absence of that, leaving the site as surface parking does little to strengthen our tax base or modernize infrastructure.

Deep Green commits to nearly $2 million in new revenues our city government will receive each year through property taxes and Return on Equity (ROE) payments from the BWL. These new resources — some $20 million over the next decade — can have a transformative impact on our city if allocated wisely. Think of the impact we could have on housing, placemaking, public safety and other areas of concern in our community.

Deep Green is not requesting any local financial incentives, which is unusual for a project of this scale. The company may pursue state-level incentives, which are standardized tools used nationwide to compete for investment. They are designed to produce net-positive returns over time. Lansing should negotiate firmly, ensure community benefits are concrete and enforceable, and maintain transparency throughout the process. 

The timing of this request, amid news about much larger, hyper-scale projects elsewhere, has understandably created confusion. People are conflating very different models. It is worth taking the time to examine the scale, technology, and community integration of this specific proposal.

Rather than blind acceptance or outright rejection, we are encouraging thoughtful negotiation that strengthens our community and aligns with our long-term economic and environmental interests. Cities across the country are crafting detailed agreements with project developers to address noise, environmental performance, meaningful community benefits, and grid resilience. Lansing can do the same.

Tom Stanton is an energy and environmental policy consultant and founder of Community Energy Solutions, LLC.

Liz Harrow is an architect in private practice and a member of MidMichigan Environmental Action Council (MidMEAC).

Joan Nelson was the founding director of Allen Neighborhood Center (1999-2022) and is a long-time advocate for Lansing’s east side.