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Ypsilanti Implements Moratorium on Water Supply for Data Centers

4/24/2026, 3:55:01 AM

Ypsilanti Community Utilities Authority's Decision

The Ypsilanti Community Utilities Authority (YCUA) has enacted a 12-month moratorium on supplying water and sewer services to data centers, including a proposed $1.2 billion facility by the University of Michigan (U of M) and Los Alamos National Laboratory. This decision, made on April 22, 2026, aims to allow for necessary environmental and water system studies to be conducted. The moratorium specifically targets hyperscale and mid-size data centers, artificial intelligence computing facilities, and high-performance computational centers, as concerns grow over the water demands these facilities impose on the local infrastructure.

Background and Context

Ypsilanti Township, where the U of M data center is planned, requested the moratorium due to limited water and sewer capacity. YCUA Executive Director Luke Blackburn noted that while the utility has an estimated excess capacity of 4 to 5 million gallons per day, the potential water consumption of two large data centers could significantly strain resources. The U of M facility is projected to use up to 500,000 gallons daily, while Thor Equities' proposed data center in Augusta Township could require 1 million gallons per day.

Community Concerns and Support for the Moratorium

Local residents and officials have expressed strong support for the moratorium, citing environmental and public health concerns. Ypsilanti Township Supervisor Brenda Stumbo emphasized that the water demands of large data centers could hinder housing development and job creation in the area. Community members, including Ypsilanti City Councilmember Me’Chelle King, voiced their support during the YCUA board meeting, highlighting the need for racial and environmental justice in neighborhoods already burdened by pollution.

Official Statements and Responses

In an online statement, U of M described its planned facility as a "high-performance computing facility" that would create 200 jobs and support various public projects in fields such as medicine and climate science. However, the university's exemption from local zoning requirements means it does not need township approval for the project. This has raised concerns among residents, particularly regarding the facility's association with nuclear weapons research by Los Alamos National Laboratory.

Criticism and Opposition

Opposition to the U of M and Los Alamos project has been vocal, with the Ypsilanti Township board passing a resolution in March 2026 opposing the facility's placement anywhere in the township. This resolution highlighted the potential risks associated with the nuclear research component, labeling the facility as a "Tier 1" target for terrorism. Augusta Township resident Wendy Albers also expressed concerns about Thor Equities' data center plans, stating that the moratorium could provide communities with the necessary time to assess the implications of such developments.

What's Next

The YCUA's moratorium will remain in effect for the next year while environmental studies are conducted. The outcome of these studies will likely influence future decisions regarding the proposed data centers and their impact on local water resources.