Ypsilanti Community Utility Authority unanimously passes 12-month moratorium halting two data center projects

Just one week after the Ypsilanti Township Board of Trustees unanimously passed a resolution urging the Ypsilanti Community Utilities Authority to impose a 12-month moratorium on delivery or approving water and sewer services for data centers, the utility unanimously consented.

The 4-0 vote on Tuesday evening, April 22, by the YCUA Board of Commissioners immediately halts “delivering, committing, reserving, extending, or approving water and sewer services for hyperscale data centers, mid-sized data centers, artificial intelligence computing facilities, and high-performance computational centers.”

The move directly impacts two high-stakes proposals in the region, including the University of Michigan’s planned $1.25 billion partnership with Los Alamos National Laboratory for nuclear weapons research, which could require up to 500,000 gallons of water per day for cooling servers.

The moratorium also halts the Thor Equities’ data center proposal in Augusta Township, just south of Ypsilanti. Also within YCUA’s water and sewer service area, the project is estimated to require as much as 1 million gallons of water per day.

YCUA Executive Director Luke Blackburn has told multiple media outlets that the utility’s wastewater treatment plant can only handle an estimated excess capacity of 4 to 5 million gallons per day.

“Two large data centers could take our capacity just like that,” YCUA Commissioner Brenda Stumbo, who also serves as the Ypsilanti Township supervisor, told Planet Detroit.  “Eliminating this capacity could prevent homes from being built or businesses from opening and creating jobs.”

The moratorium, effective immediately, covers new service connections, capacity reservations, “will-serve” letters, infrastructure expansions, and any preliminary or conditional approvals across YCUA’s service area in parts of Washtenaw and Wayne counties.

Last updated in 2018, the moratorium will remain in place for at least 12 months or until the utility completes studies, updating its wastewater master plan.

On April 15, the Ypsilanti Township Board approved Resolution 2026-08 during a special meeting, formally requesting that YCUA pause commitments to such high-demand facilities while studies are conducted. Blackburn, who introduced the utility’s proposed moratorium, noted the language was “essentially very much the same in all material aspects” as the township’s request, with only minor tweaks for practical implementation.

During the township meeting, Stumbo reportedly stated, “I don’t know anyone that supports data centers … other than Gretchen Whitmer.”  According to the Eastern Echo, Stumbo added “I am horribly disappointed in Jocelyn Benson and Gretchen Whitmer. I worked tirelessly to help them get elected, and for them to slap us in the face and do this is unimaginable.”

Supporters of the moratorium argue that state tax incentives for data centers have artificially accelerated proposals without adequate local review, potentially shifting costs and risks onto existing ratepayers and the environment.

As communities across the Midwest grapple with the explosive growth of data centers and AI infrastructure, Ypsilanti’s action reflects a broader push for deliberate planning over rushed commitments.

Township and YCUA officials say the pause provides essential time for facts to guide future decisions rather than speculation or incentives alone. Further reporting will track the status of ongoing studies and any responses from project proponents.

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