Resources for Township Officials

For township supervisors, planning commissioners, zoning board members, and township attorneys

You're often the first point of contact when data center developers come calling. These resources can help you understand what you're facing, what questions to ask, and what authority you have.

Introduction

Your role matters. When a multi-billion dollar data center project wants to build in your township, you're not just processing a permit application—you're making decisions that will shape your community for decades.

These facilities are unlike anything most townships have encountered. A single data center can consume as much electricity as a small city, use millions of gallons of water annually, and generate property tax bills in the millions—if no abatement is granted. Construction takes 2-3 years with hundreds of workers. Operations employ 50-200 people but run 24/7 with minimal visible activity.

Why townships? Developers often prefer townships over cities because of faster approvals, lower costs, and proximity to transmission infrastructure. Farmland near high-voltage lines is the ideal site: flat, cheap, and grid-connected.

But speed shouldn't mean bypassing due diligence. You have authority over land use, zoning, and local permits. You can ask questions, require conditions, and negotiate agreements. This guide helps you use that authority effectively.

Understanding the Development Process

Timeline Overview

A typical data center development follows this sequence:

1. Initial Outreach (Weeks 1-4)

Developer or representative contacts township officials. Often confidential initially. May request informal meetings before formal applications.

2. Land Acquisition (Weeks 4-12)

Often parallel to approvals. May involve purchase options, NDAs with landowners, LLC shell companies to obscure buyer identity.

3. Formal Applications (Weeks 8-16)

Zoning variance or conditional use permit. PILOT negotiation begins. Environmental assessments submitted. Traffic studies completed.

4. Public Process (Weeks 12-24)

Planning commission review. Public hearings. Board votes on zoning and PILOT. Community engagement (or opposition) peaks.

5. Construction (2-3 Years)

Site preparation, foundation, building shell, mechanical systems, IT equipment installation. Peak employment: 300-800 workers.

6. Operations (25+ Years)

Minimal visible activity. 50-200 employees. Equipment refreshes every 5-7 years. Possible expansions.

Key Decision Points

Your township typically has authority over:

Zoning variance or conditional use permit - Required if data centers aren't explicitly allowed
PILOT or tax abatement agreement - Most projects request these; you can negotiate or decline
Infrastructure agreements - Who pays for road improvements, utility extensions, water/sewer
Community benefit agreements - Local hiring, charitable giving, public amenities

Your Authority vs. Others

Townships Control

Land use zoning
Local permits
PILOT terms
Infrastructure agreements

State/County Control

Utility rates & service
Environmental permits
Major road access
State tax incentives

Federal Control

Grid interconnection
Air quality standards
Wetlands/waterways
National security review

Questions to Ask Developers

Don't accept vague answers. Request written responses with supporting data. The more specific your questions, the better informed your decisions.

Technical Questions

• What is the facility's peak power demand in megawatts?
• What cooling technology will be used?
• What is the water source and annual consumption estimate?
• What backup power systems are planned?
• What is the expected construction timeline?

Financial Questions

• What is the total project investment?
• What property tax revenue is projected (without abatement)?
• What PILOT or abatement is being requested?
• What is the duration of any tax agreement?
• What triggers renegotiation of terms?

Employment Questions

• How many permanent jobs will be created?
• What is the average salary for operations positions?
• What local hiring commitments are being made?
• How many construction jobs during building phase?
• What training programs will be offered?

Environmental Questions

• What is the facility's expected water consumption?
• How will stormwater be managed?
• What noise levels are expected at property boundaries?
• What is the carbon footprint and renewable energy commitment?
• How will waste heat be managed?

Community Questions

• What community benefit agreements are proposed?
• How will visual impact be mitigated?
• What traffic management is planned during construction?
• What emergency services coordination is planned?
• Will there be any public access or community space?

Complete Question Bank

For a comprehensive list of 80+ questions organized by category, see our full question bank.

View Question Bank

Financial Considerations

Understanding PILOT Agreements

A PILOT (Payment In Lieu Of Taxes) agreement substitutes fixed payments for standard property taxes. Developers almost always request them. Understanding how they work is critical to protecting your township's interests.

How PILOT Works

Standard tax: Property assessed at market value, taxed at millage rate
PILOT: Fixed payment schedule negotiated upfront
Duration: Typically 10-20 years
Escalators: May include annual increases (2-3%)
After expiration: Returns to standard property tax

Key Negotiation Points

Payment amount: What percentage of full tax?
Duration: Shorter = better for township
Escalators: Keep pace with inflation
Triggers: Renegotiation if facility expands
School district: Impact on school funding

Example Comparison

Scenario	Annual Payment	20-Year Total
Current farmland tax	$50,000	$1M
Full data center tax (no PILOT)	$8M	$160M
PILOT (50% reduction)	$4M	$80M
Revenue foregone	$4M/year	$80M

Note: These are illustrative figures. Actual values depend on property assessment, local millage rates, and negotiated terms.

Cost-Benefit Framework

A complete fiscal analysis should consider:

Direct revenue: PILOT payments, fees, construction permits
Direct costs: Road maintenance, emergency services, water/sewer, administration
Indirect benefits: Construction spending, employee spending, supplier contracts
Indirect costs: Wear on infrastructure, property value impacts, quality of life
Opportunity cost: What else could this land become? Another industrial use? Residential development?
Risk: Facility closure (equipment cycles are 5-7 years), technology obsolescence, economic shifts

Consider hiring an independent consultant to review the developer's projections and conduct your own fiscal impact analysis.

Environmental Considerations

Water Impact

Consumption: 1-5 million gallons per day for large facilities using evaporative cooling
Sources: Municipal supply, groundwater wells, surface water
Impact: Potential stress on aquifer, neighboring wells
Monitoring: Require regular testing and public reporting
Contingency: What happens during drought?

Noise Assessment

Source: Cooling systems run 24/7 at 60-80 decibels
Backup generators: Monthly testing, emergency use
Standards: Measure at property boundaries
Mitigation: Sound barriers, setbacks, building design
Baseline: Establish current noise levels before construction

Visual Impact

Scale: Buildings 40-60 feet tall, 200,000+ sq ft
Lighting: Security lighting required 24/7
Screening: Berms, trees, architectural standards
Character: Industrial aesthetic in rural setting
Renderings: Request visual simulations from multiple angles

Air Quality

Backup generators: Diesel emissions during testing/outages
Testing schedule: Monthly or quarterly
Permits: State air quality permits required
Monitoring: Continuous emissions monitoring
Standards: Compliance with EPA regulations

Case Studies

Saline Township, Michigan

Project: OpenAI Stargate, $7 billion, 1.4 GW data center campus

Timeline: Initial outreach January 2025, consent judgment March 2025

Community Response: Resident petition, public hearings, consent judgment limiting scope

Key Terms:

Phase I capped at 250 acres, 600 MW
Future expansions require new zoning approvals
Water usage from municipal supply with monitoring
PILOT agreement negotiated separately
Community benefit agreements under discussion

Lessons: Community engagement matters. Even with a determined developer, townships can negotiate conditions and phasing to preserve future control.

Loudoun County, Virginia (Data Center Alley)

Context: Pioneering data center hub since early 2000s

Evolution: From enthusiastic promotion to comprehensive zoning overlays

Current Approach:

Special data center zoning district with specific requirements
Design standards for screening, landscaping, architecture
Noise monitoring and mitigation requirements
Community benefit agreements common

Lessons: Early projects faced minimal requirements. Over time, communities developed more sophisticated regulatory frameworks. Learn from their evolution—don't repeat early mistakes.

Policy Options

Townships have several approaches for regulating data center development. The right choice depends on your community's values, capacity, and development pressure.

Conditional Use Permits (Case-by-Case)

Evaluate each project individually through public hearing process

Advantages

Maximum flexibility
Tailored conditions
Community input

Disadvantages

Time-consuming
Legal vulnerability
Inconsistent standards

Special Zoning Districts

Create dedicated data center zones with specific requirements

Advantages

Clear standards upfront
Faster approvals
Less legal risk

Disadvantages

Requires planning expertise
Less flexibility
May attract unwanted projects

Temporary Moratoriums

Pause new applications while developing comprehensive regulations

Advantages

Time to study and plan
Community engagement
Avoid rushed decisions

Disadvantages

Legal challenges possible
Must be time-limited
May deter investment

Working with Township Attorney

Your township attorney is your most important advisor in this process. Consider:

Supplementing with specialized land use or energy attorney
Legal review before committing to any terms
Understanding your leverage and limitations
Documenting all negotiations and decisions
Ensuring community benefit agreements are legally enforceable

Need More Guidance?

Explore our complete question bank or review resources for other stakeholders.

View Question Bank All Resources