State Data Center Moratorium Could Delay The Barn

A proposed state moratorium on data centers could keep The Barn from beginning operations until April 1, 2027, even though construction is already underway in Saline Township.

“Yes, the bills would not allow the Saline project or any data center not already operational to begin operating until the end of the moratorium,” Kevin Mulligan, chief of staff for state Sen. Jim Runestad, told The Sun Times News.

Mulligan pointed to language in Senate Bill 1018 stating that, until the end of the moratorium, “a person shall not begin operation of a data center.”

Runestad, R-White Lake, and state Sen. Ruth Johnson, R-Holly, introduced Senate Bills 1018, 1019 and 1020 on June 4. The bills would create a temporary pause on data center projects while lawmakers review possible impacts on electricity costs, water, farmland and local communities.

Runestad said projects such as The Barn have “triggered an overwhelming public outcry” and said the scale and speed of data center development “demands an immediate moratorium and careful scrutiny so that taxpayers and residents don’t get stuck with the bill.”

That distinction matters because The Barn is already under construction, but has not begun operating. Project materials describe the Saline Township artificial intelligence data center campus as a more than $16 billion investment before computing equipment is installed. The project is backed by Related Digital, Oracle and OpenAI.

Gov. Gretchen Whitmer has opposed efforts to halt data center development. Speaking to reporters June 2, the day after attending The Barn groundbreaking, Whitmer said data centers are likely to be built somewhere and argued Michigan should focus on holding companies to high standards.

“We are all, more and more, consuming technology and data and these data centers are going to get built,” Whitmer said, according to the Detroit Free Press. “So, my thought is if we can hold them to a high standard and do it in Michigan, that’s the best way to do it.”

Saline Township is also reviewing a local moratorium, but that proposal appears narrower than the state bills.

Clerk Kelly Marion said the township is working on a moratorium, but said, “to my knowledge,” it would not affect the current data center.

A June 4 Sun Times News report said the local discussion focused on a possible six- to 12-month moratorium on future industrial zoning requests, which would not affect existing projects such as The Barn.

A similar House package was introduced in February by Reps. Jennifer Wortz, R-Quincy, Joseph Fox, R-Fremont, and Dylan Wegela, D-Garden City. Both the House and Senate packages were referred to Government Operations committees, where legislation often faces long odds.

A May statewide poll commissioned by the Detroit Regional Chamber found voters divided on data centers, but more open to them with regulations. The Glengariff Group survey found 33.3% of likely voters were open to a data center within 25 miles of their home, while 55.2% were not. With proposed regulations in place, 48.7% said they would be open and 41.3% said they would not.