UM Sustainability Institute - What Local Governments Should Know About Data Centers

Updated 2 days ago

The City of Parchment hosted Sarah Mills, PhD. Director of the Center for EmPowering Communities at the University of Michigan. The presentation explains the impact of data centers in communities of various sizes, the differences between data centers and their various types depending on geography and infrastructure, and the pros and cons of the data centers impact on communities.

Chapters

Welcome and Opening Remarks (00:00:16)
Mayor Robert Britigan opens the meeting, thanking attendees and the Parchment Community Library.

City of Parchment Mayor Robert Britigan welcomes everyone to the meeting, thanks the Parchment Community Library for the use of the facilities, and acknowledges the Friends of Public Media Network for videotaping the meeting.
Introduction of Special Guests (00:00:37)
Special guests are introduced, including commissioners and the county climate manager.

Mayor Britigan introduces several city commissioners present at the meeting and mentions that special guests will be speaking. He highlights the importance of making informed decisions about the future of the city, particularly regarding the old paper mill site.
Discussion on Future Use of the Mill (00:01:39)
Discussion on the future vision for the old paper mill, considering industrial and residential uses.

The mayor discusses the city's efforts to determine the highest and best use for the old paper mill site. The study suggests possible industrial and residential uses, including a potential data center.
Introduction to Data Centers (00:02:05)
Taylor Van Winkle introduces the significance of data centers and their impact on local communities.

Taylor Van Winkle, the county climate and sustainability manager, introduces the topic of data centers, explaining their long history and evolving role in modern technology. She emphasizes the importance of understanding data centers for informed community planning.
Presentation by Dr. Mills on Data Centers (00:03:01)
Dr. Mills presents on data centers, covering their history, types, impact, and local government considerations.

Dr. Mills, director of the Center of Empowering Communities at the Graham Sustainability Institute, delivers a comprehensive presentation on data centers. She covers topics such as the basics of data centers, their potential environmental and economic impacts, Michigan's policies on data centers, and considerations for local governments. She provides insights into enterprise and co-location data centers, data center tax incentives, and the significance of data centers in the context of local zoning and planning.
Discussion on Utility Prices and Data Centers (00:29:54)
Discussion about the impact of coal and natural gas plants on grid cleanliness and the role of data centers in utility pricing.

The discussion focused on reducing reliance on coal and natural gas plants to achieve a cleaner grid. There was concern over the lack of information on utility pricing with and without data centers. The Public Service Commission requires utilities to present their plans and rates periodically, and a specific requirement is to show rates with and without the impact of data centers.
Impact of Data Centers on Utility Rates (00:31:02)
Exploration of how data centers might affect utility rates and the broader implications for service territories.

There was acknowledgment of the difficulty in predicting whether rates would rise with the presence of data centers, given an aging electric grid. It was noted that any impact, positive or negative, on utility rates from data centers would affect the entire service territory, not just the host community, unless it was a municipal utility.
Water Usage by Data Centers (00:32:21)
Examination of the water usage in data centers, focusing on cooling methods and their environmental implications.

Data centers use water primarily for cooling. The type of cooling system (evaporative or closed-loop) determines the water usage. Evaporative cooling uses more water but less electricity, while closed-loop systems use minimal water but more electricity. The trade-offs between water and electricity usage were discussed in terms of environmental impact.
Regulation of Data Center Water Use (00:34:42)
Overview of the regulatory framework governing water usage in data centers, including EGLE's role.

EGLE regulates data center water use, focusing on direct water draws from wells or surface sources. Any pump exceeding 100,000 gallons per day is regulated. Public utilities supplying water must comply with the Safe Drinking Water Act, ensuring capacity for existing customers.
Air Quality and Data Centers (00:36:06)
Discussion on how data centers impact air quality, particularly through electricity production and generators.

Data centers' impact on air quality relates to the emissions from electricity generation and the use of backup generators. EGLE regulates these generators, ensuring compliance if they exceed certain thresholds. The discussion highlighted the importance of managing peak electricity demand to minimize reliance on polluting power plants.
Data Centers and Land Use (00:38:06)
Consideration of data centers' effects on land use, including farmland and natural features.

While data centers occupy minimal farmland, the renewable energy needed to power them could have a more significant impact on farmland. Other considerations include the effects on natural features like wetlands if data centers are developed in sensitive areas.
Quality of Life Impacts (00:39:01)
Exploration of how data center construction affects quality of life through noise, erosion, and visual changes.

Construction activities related to data centers can be disruptive due to noise, vibrations, and soil erosion. The introduction of streetlights in previously dark areas can change the visual landscape. Sound regulation and community input are crucial in managing these impacts.
Economic Benefits of Data Centers (00:40:02)
Discussion on the economic incentives for attracting data centers, focusing on job creation and tax revenue.

Data centers are seen as beneficial for job creation, particularly during construction. Permanent job estimates vary widely. Local governments might benefit from increased tax revenues, although property tax incentives and guarantees are important considerations.
Zoning and Data Centers (00:41:01)
Discussion on zoning considerations for data centers, including industrial zones and regulations.

Hyperscale data centers are best suited for industrial zones. Zoning should include reasonable regulations based on verifiable impacts. Local governments should ensure zoning ordinances are clear about where data centers are allowed and under what conditions.
Decommissioning Data Centers (00:46:02)
Consideration of decommissioning plans for data centers, including financial assurances and end-of-life definitions.

Decommissioning plans should outline which infrastructure will be removed at the end of a data center's life. Financial instruments like surety bonds ensure funds are available for decommissioning. Agreements should define end-of-life criteria, such as utility use thresholds.
Community Agreements and Legal Considerations (00:54:02)
Discussion on the importance of written agreements and legal considerations in data center development.

Local governments should obtain written commitments from data center developers on key issues such as generator use, construction traffic, and property tax guarantees. Legal advice is recommended to ensure agreements are enforceable and beneficial to the community.
Planning for Data Centers (00:56:33)
Discussion on planning considerations for integrating data centers into local infrastructure and land use.

Communities should plan for data center integration by identifying suitable locations with existing infrastructure and considering potential reuse of waste heat. Collaboration with developers on infrastructure needs and community impacts is essential for successful integration.
Discussion on Sound Standards and Zoning Enforcement (00:59:39)
Discussion on how sound standards can be affected by environmental factors and the importance of zoning enforcement in maintaining those standards.

The meeting discussed how sound standards are not always concentric and can be affected by vegetation or elevation changes. It was emphasized that after a project is built, there should be agreed-upon monitoring to ensure compliance with drawn maps. Zoning enforcement plays a crucial role in maintaining these standards, ensuring that operations do not just meet paper standards but continue to operate within those standards. It is important to work these expectations into decommissioning agreements and conditions of approval.
Renewable Energy Sound Standards and Infrasound Concerns (01:01:00)
Exploration of sound standards in renewable energy, focusing on audible and infrasound, and the challenges of setting standards to prevent disturbances.

The conversation turned to the sound standards in renewable energy, particularly how DBA (decibels A-weighted) is used to measure sound that prioritizes human hearing. There are concerns about infrasound, which is not audible but can be felt, causing vibrations. The discussion included the need to understand what standards prevent disturbances such as shaky houses. There is ongoing exploration into the impact of different cooling technologies on sound profiles and the role of HVAC and generator equipment in sound production.
Impact of Data Centers on Local Communities (01:03:00)
Discussion about the impact of data centers on local communities, including sound issues, power demands, and the size of potential facilities.

The meeting addressed concerns about the impact of data centers on local communities, focusing on sound issues and power demands. It was noted that backup generators often run to supplement energy needs due to inadequate electrical infrastructure. The conversation included questions about how large a data center could be accommodated at local sites, with examples given of existing data centers in the area. The discussion highlighted the importance of understanding the infrastructure capacity and sound management associated with data centers.
Public Concerns about Hyperscale Data Centers (01:06:00)
Public concerns about hyperscale data centers were addressed, including the need for clear communication with constituents about the scale and impact of such facilities.

Community concerns about hyperscale data centers were discussed, with emphasis on the need to communicate clearly about the scale and impact of such facilities. There is a distinction between various sizes of data centers, and it is important to address misconceptions about what is being proposed. The discussion included suggestions for municipal leaders on how to talk to constituents about these issues and how to manage community expectations and reactions.
Preparing for Industrial Development (01:09:00)
The importance of preparing for industrial development was discussed, emphasizing the need for community standards and economic benefits.

The conversation shifted to the importance of preparing for industrial development, including data centers. The discussion highlighted the need for communities to set standards that ensure new industries align with local quality of life. It was argued that industry brings necessary tax revenue to local governments, which are often struggling with constrained budgets. Communities were encouraged to think about what terms they want industry on and to prepare zoning codes to accommodate future technological and industrial advancements.
Closing Remarks and Adjournment (01:14:01)
The meeting concluded with closing remarks, thanking participants and hoping for informed decisions moving forward.

In closing, the moderator thanked everyone for attending and expressed hope that the discussion would lead to informed decisions in the future regarding community planning and industrial development.