ASIDE FROM OUR RECENT temperatures, the data centers issue has become the hot topic of the day. And like most hot topics, opinions are hitting the market as fast as social media can deliver them. So, with a lot of people sharing their thoughts, often based on a lack of verifiable information, I figured… why not one more?
Actually, I’ve tried to absorb as much info on the issue as my head can hold. The technical factors overwhelm me, so I rely on the big picture and public opinion to help guide my thought process. Here’s what stands out: Everything I’ve mentioned, including weather reports, social media, and even my thought process, relies on data centers. So there’s that.
The sudden explosion in the demand for more data centers is due largely to the accelerated growth of AI. Apparently it puts quite a strain on the grid. Additionally, there’s the organic growth of every other organization and individual using data dependent devices. Like whatever you’re reading this on.
Again, I’m not an expert, but here’s what else I have heard, or been told, about data centers… the pros and cons, as I see them.
Pros…
• The most obvious pro is the substantial investment made into the community. Depending on the size of the project, the construction phase alone would bring millions of dollars into whatever area was selected for development.
• Construction can take years, and during that time the influx of good-paying, albeit temporary jobs, would mean a substantial amount of cash suddenly flooding the market. There would be more money for locals to work with. Entrepreneurs could finally identify the capital needed to get their dreams off the ground.
• Though the number of permanent jobs which would be created is hard to nail down, it’s generally assumed it would be modest. But if even a handful of good paying positions are created, that’s not nothing.
• As the credible futures of our mining and healthcare industries are anything but guaranteed, diversification of our economic base becomes more important. With the trend being towards everything technological, why not get in the game? A data center could be the start of a new identity for the great white north. Why does Silicon Valley get all the high tech stuff?
• Finally, the big pro. Even though the state has established a set of incentives regarding specific taxes they would normally collect, local property taxes would still be in play. No brownfield. No sweetheart deals. Real property taxes. And we’re not talking thousands of dollars… we’re talking millions of dollars over the life of the operation.
Cons…
• From the various pipelines providing feedback, the themes are the same. “Most communities are concerned about hyperscale centers that consume vast amounts of electricity, water, and land, and create significant noise and vibration,” says City Planner and Zoning Administrator Dave Stensaas. “And those concerns are relevant, even if a proposed development site is far from hyperscale.”
And although the concerns are legit, they’re also subject to exaggeration and misinformation.
Con Reaction
• As the industry itself discovers new technologies, resource depletion can be mitigated by smarter processes. Though millions of gallons of water are needed at the larger operations, usage can be tempered by closed-loop systems which circulate the water back through the system. Re-use and re-duce.
• Opponents of data centers suggest the additional pressure on power providers will result in residential customers being charged more. According to one industry insider, that’s just not true. He says data center users pay their own way and even pay for power company expansions their usage necessitates.
• Land? If we have anything around here, it’s land. Enough that a center could be located away from residential settings, thereby negating concerns about noise and vibration.
Which Brings Us To… Where?
Since infrastructure requirements would have to be met, and nimbyism would surely come into play, site choice would be a delicate process.
For our purpose, let’s look strictly at Marquette County, starting specifically with the City of Marquette. According to Stensaas, the subject has been addressed by city leaders. “Yes, our staff has discussed data center development with the Planning Commission.” Zoning and land code issues would have to be addressed, and would have to be put before the public at some point.
Although the city would have to consider all the different elements of such a project, and there are way too many different elements to cover here, it doesn’t sound like anything is off the table… yet. However, it may never come to that.
Stensaas referred me to a recent analysis which claims the big projects, the hyperscales, require so much electricity that no Michigan communities north of Ludington can currently meet that need, and thus those developers are not seeking to locate them in northern Michigan or the Upper Peninsula.
That might be true, but it actually doesn’t sound like a deal-breaker to me. Our power production will be going through some big changes in the near future. Seems like the perfect opportunity to bring new stakeholders to the table. Especially those with very deep pockets.
A Better Choice
Considering all factors, somewhere at Sawyer would seem to be a logical site to throw into the conversation.
Moving the county airport to the former air force base way back in ‘99 was supposed to give what was left of that community a shot in arm. Apparently they got a placebo.
Can you imagine the activity such a project could generate at Sawyer… a place in dire need of something positive? They might even have to bring in a gas station.
According to Ray Anderson, Interim Forsyth Township Manager, the township was previously approached by an interested investor, but apparently after meeting with township officials, nothing came of it. Big ideas which feature both economic opportunity as well as an element of controversy bring anyone with a fishing pole and a keyboard out of the woodwork. And here I am, sans the pole.
Anderson addresses infrastructure needs, and whether or not Sawyer would meet them. “From my limited understanding of data center development, these facilities have traditionally consumed a large amount of water and electricity which taxes any existing infrastructure. It is also my understanding that the data center industry understands this and have been looking at developing “stand-alone” systems which would limit the negative effects onto the utilities.”
Echoing what we hear from other areas in the data center crosshairs, Anderson says, “There is a lot of negative sentiment regarding data centers. It is our responsibility to educate ourselves so that we can make informed decisions while taking the feedback from our residents. The first step was to pass the moratorium on data centers to allow the Township to educate ourselves and to develop proper zoning standards which will hopefully protect the interests of the public and keep us compliant with the state zoning and planning act.”
“So you’re telling me there’s a chance.” Opponents might suggest that’s an appropriate quote since the film it’s from is called Dumb and Dumber.
Just Getting Started
If this movement has any juice at all, potential advocates will first have to convince themselves it’s a good idea, and then win over a skeptical public. We still have a lot to learn, and we’re dealing with an industry in constant flux.
Mary Myers, Director of Economic Development Services for the LSCP offers this… “We always encourage communities to do their due diligence before moving forward with any major project, and data centers are no different. It’s important to take a close look at things like the impact on the community, infrastructure needs, environmental considerations, workforce availability, and whether a project is the right fit for the community.” Sound advice.
If it looks like I’m all in on a data center at Sawyer, I’m not. But I’m also not in the “never here” camp. I think of all the initial objections a decade ago to the mine development at Big Bay. From what I’ve seen, they’ve been good citizens and have respected the environment as they indicated they would.
I’m simply in favor of keeping an open mind to future development. I know, a lot of people choose to live here precisely because there isn’t a lot of development. I get it. Surely chasing a fast buck at the cost of our way of life is something very few would support. However, while this issue is still in its infancy, I would hope those who want to maintain the status quo would let the discovery process go forward, at least until it shouldn’t.
Meanwhile, is there any interest in welcoming a cutting edge industry offering economic and social benefits aligned with our values? Done right, with appropriate conditions in place, a data center could do just that.