Data Center Impact Assessment

Deep Green 24MW Facility — Downtown Lansing, Michigan

Sample Report | February 2026

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Executive Summary

This assessment evaluates the environmental and financial impact of Deep Green's proposed 24-megawatt data center at Kalamazoo & Cedar Streets in Lansing's Stadium District. The $120+ million facility would occupy approximately 25,000 sq ft on 2.7 acres of currently underutilized parking lots, two blocks south of Jackson Field.

Overall Impact Score: 6.4 / 10 — Moderate net positive with significant environmental trade-offs requiring mitigation.

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1. Financial Impact

Direct Revenue

Capital Investment

• Construction investment: $120,000,000+

• On-site fuel cell plant: Paid by Deep Green, owned by BWL

• Infrastructure upgrades: Deep Green covers all BWL infrastructure costs

Job Creation

• Construction phase: 35+ union jobs

• Permanent operations: 15+ high-tech positions

• Estimated annual payroll impact: $1.5M–$2.2M (operations phase)

Risk Factor

Deep Green is a UK-based company entering its first US market. If the company ceases operations, BWL retains the fuel cell plant and infrastructure investments. However, the property tax and utility revenue streams would be at risk.

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2. Environmental Impact

Carbon Emissions

The on-site 16MW natural gas fuel cell plant is projected to produce:

• ~105 million lbs (47,600 metric tons) of CO2 annually

• Equivalent to emissions from 11,000+ passenger vehicles

• Would require 47,773 acres of US forest to sequester — more than 9x the size of MSU's campus

Emissions Offset

Deep Green claims on-site power generation cuts expected emissions in half versus using BWL's grid for the full 24MW load. The heat donation to BWL's downtown system would:

• Reduce BWL natural gas demand by 310 million cubic feet/year

• Equivalent to heating ~5,000 homes

• Reduce emissions equivalent to removing 3,000 cars from the road

Net Carbon Assessment

Verdict: The facility produces a net carbon increase of approximately 7,400 metric tons annually, though this is significantly lower than a conventional data center of equivalent capacity.

Water Usage

• Closed-loop water-glycol cooling system

• Estimated annual consumption: <500,000 gallons

• Comparable to a single fast-food restaurant

• No discharge into the Grand River

• Rating: Minimal impact ✅

Noise

• Projected exterior noise levels: 55–65 decibels

• Comparable to normal conversation

• Cherry Hill residential neighborhood is within blocks

• Rating: Low-moderate impact ⚠️

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3. Infrastructure & Grid Impact

Energy Load

• 8 MW drawn from BWL's existing grid (BWL confirms current surplus capacity)

• 16 MW generated by on-site fuel cell plant

• BWL's existing customer rates are not expected to increase

• Deep Green pays for all new infrastructure — policy ensures no cost burden on existing ratepayers

Land Use

• Current use: Underutilized surface parking lots (city-owned)

• Proposed use: 25,000 sq ft data center + fuel cell plant on <1 acre

• Remaining 1.7+ acres available for complementary development

• Requires rezoning from "urban core" to "industrial"

• Note: Lansing Planning Commission previously voted down the rezoning proposal

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4. Community Impact

Positive

• Positions Lansing as a national model for sustainable data center development

• First heat-reuse data center of its kind in the United States

• Annual $120,000 contribution to low-income energy assistance more than doubles Pennies for Power funding

• Urban infill development replacing surface parking

Concerns

• Strong community opposition documented at multiple public meetings

• Residents skeptical of environmental promises — most commitments are not yet contractual

• Proximity to residential neighborhoods (Cherry Hill)

• Fuel cells are not classified as "clean energy" under Michigan law

• No fuel cell plants currently operate in the state — limited regulatory precedent

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5. Comparative Analysis

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6. Recommendation

The Deep Green proposal represents a moderate net positive for Lansing with meaningful financial benefits ($3M+/year) and an innovative heat-reuse model. However, the net carbon increase of ~7,400 metric tons/year and the lack of contractual environmental commitments present real risks.

We recommend the city:

1. Require binding environmental performance commitments before approval

2. Establish independent emissions monitoring with public reporting

3. Negotiate a community benefit agreement with enforceable penalties

4. Commission an independent noise study for the Cherry Hill neighborhood

5. Secure a decommissioning bond to protect taxpayers if Deep Green exits the market

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This is a sample report from Data Center Impact. Our full assessments include detailed modeling with location-specific energy grid data, local labor market analysis, 10-year financial projections, and customized mitigation recommendations.

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