Summary
A $120 million, 24-megawatt heat-reuse data center is proposed on a city-owned parking lot in the 200 block of S. Cedar. Residents and council are split: union trades see jobs and tax base, opponents see noise, emissions, water risk and lost downtown housing potential. Council heard hours of testimony and will decide the land sale and rezoning on February 23.
At a glance
- Total mentions
- 2
- Last 30 days
- 0
Last discussed Mar 9, 2026.
Impact analysis
The city would pocket $1.4 million for the lot plus roughly $873,000 a year in property taxes (though much is captured by the TIFA), and BWL says the deal saves about $3 million on steam-to-hot-water conversion costs.
Union construction trades, BWL ratepayers through lower heating costs, and the city's tax base.
Nearby residents and ratepayers worry they'd bear noise, emissions and utility-cost risk if promises aren't enforceable.
Mentions & discussions (2)
Committee of the Whole - Mar 9, 2026
The 220 S. Larch rezone from downtown urban core to industrial moved to an April 6 hearing, with the city now a co-applicant and conditions matching the buy-sell agreement.
City Council - Feb 9, 2026
A $120 million, 24-megawatt heat-reuse data center is proposed on a city-owned parking lot in the 200 block of S. Cedar. Residents and council are split: union trades see jobs and tax base, opponents see noise, emissions, water risk and lost downtown housing potential. Council heard hours of testimony and will decide the land sale and rezoning on February 23.
Related development
Z-3-2026, 220 S. Larch St. Conditional Rezoning
Approval flips a downtown-core parcel to industrial use; opponents warn it caps downtown growth and undermines the Design Lansing plan.
Act-7-2025 — Sale of Lot 49/49A, 200 block S. Cedar St.
If approved, the city gains $1.4 million, ~$873,000 in annual property taxes, and waste heat for BWL's downtown loop — but loses a downtown parcel opponents say could hold housing.
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