Briefing 09/26/2025
Weekly updates on the political risks American data center projects
This week’s roundup: In Indiana, Google withdrew its $1B, 468-acre “Project Flo” rezoning request in Franklin Township after council opposition and protests from local residents. In Michigan, Howell Township’s Planning Commission recommended denying a $1 billion, 1,000-acre data center reportedly backed by Meta after 500 residents turned out and a petition garnered over 2,100 signatures. In Minnesota, regulators are reviewing a 395-acre Hermantown data center proposed by Mortenson, with opposition led by the Minnesota Center for Environmental Advocacy and residents citing water and power concerns. In Wisconsin, Menomonie’s mayor halted negotiations on a $1.6B data center by Balloonist LLC following community pushback over secrecy, despite earlier annexation approvals.
Google Withdraws Rezoning Proposal for 468-Acre Franklin Township Data Center (Project Flo)
On Sept. 22, 2025, Google withdrew its rezoning application for the proposed 468-acre “Project Flo” data center in Franklin Township, Indianapolis, hours before the City-County Council was expected to vote it down.
As Data Center Watch Brief monitoring explained in previous issues, the site along I-74 and Post Road had already received 8–1 approval from the Metropolitan Development Commission in August. However, council members, residents, and local groups raised concerns about environmental impacts and transparency, particularly after it was revealed that Councilor Michael-Paul Hart had signed an NDA related to the project. Dozens of protestors demonstrated outside a Sept. 8 meeting, and the group Protect Franklin Township, led by Andrew Filler, stated it would remain active as Google retains the option to refile within three months.
Affected Project:
Project Flo: proposed $1 billion, 468-acre, four-building Google data center campus in Franklin Township, Indianapolis. The developer is Google-affiliated Deep Meadows LLC.
Opposition:
Protect Franklin Township (community group)
Franklin Township Civic League
Why it matters (for the data center industry):
Volatile approvals: A project can secure initial commission approval but still be halted at the council stage when opposition mobilizes, underscoring the uncertainty of local land-use processes.
High-profile case: Google’s withdrawal represents one of the most visible recent setbacks for hyperscale development in Indiana, illustrating how community organizing, environmental concerns, and transparency issues can influence billion-dollar projects even in historically supportive markets.
Howell Township, Michigan, Planning Commission Rejects Rezoning for 1,000-Acre Data Center
After an eight-hour meeting that drew more than 500 residents, the Howell Township (MI) Planning Commission voted at 2:30 a.m. on Sept. 24, 2025, to recommend denial of a rezoning request for a proposed ~1,000-acre data center on the Van Gilder family farm. Local officials estimate the project could generate $20–30 million annually in tax revenue, with a total investment of around $1 billion. The project is reportedly backed by Meta (parent of Facebook and Instagram), though official filings list only an unnamed Fortune 100 company.
Affected Project:
Howell Township Data Center: A proposed $1 billion, 1,000-acre data center by a Fortune 100 company, identity not disclosed, rumored to be Meta.
Opposition:
Local Residents of Howell Township: More than 500 attended the meeting, coordinating in local news Facebook groups. Petition with 2,100+ signatures.
Why it matters:
Local resistance vs. state incentives: Gov. Gretchen Whitmer approved tax exemptions in January to attract hyperscale data centers, but local pushback shows the limits of state-level incentives when projects face intense grassroots opposition.
Diversity of opinions: Despite strong union support highlighting potential job creation, local opposition in Howell was significant, citing noise, pollution, and heavy water and electricity demand.
Hermantown, Minnesota, Data Center Identified in AUAR; State Decision Expected by Sept. 30
Public documents confirm that a nearly 400-acre Hermantown development is slated as a large data center, with Mortenson identified as the proposer, but the AUAR under state review through Sept. 30 describes only “light industrial development.”
The opposition, led by the Minnesota Center for Environmental Advocacy (MCEA), argues that the omission obscures the impacts on water, energy, and noise. MCEA has pressed for transparency, filed record requests, and tied the case to broader litigation challenging vague environmental reviews in Minnesota cities. Local residents are also voicing concerns in forums and Facebook groups, focusing on water consumption, power demand, and the lack of clarity in the review process.
Affected Project:
Hermantown Data Center: a phased 1.8M sq ft facility proposed by M.A. Mortenson Company. End user not yet disclosed.
Opposition:
The Minnesota Center for Environmental Advocacy (MCEA) has combined litigation, public records requests, and advocacy efforts to push for greater transparency while criticizing the adequacy of the review framework.
Local residents and community forums have expressed concerns over water, energy, and noise.
Why it matters:
Stronger scrutiny: Organized opposition from groups like MCEA can drive regulators to impose stricter review standards or additional conditions related to utilities, land use, and environmental protections.
Precedent-setting process: Hermantown’s approach to disclosure, reliance on an AUAR instead of a full Environmental Impact Statement, and handling of public participation could shape how other mid-sized U.S. jurisdictions review large data center projects in the future.
Menomonie Mayor Halts $1.6B Data Center Project
On Sept. 24, 2025, Menomonie (WI) Mayor Randy Knaack announced he would pause city support for a proposed $1.6 billion data center led by Balloonist LLC, citing resident concerns over secrecy and community impacts. The city had already annexed land for the project and anticipated $1.7 million in annual tax revenue, but dozens of citizens gathered at Jake’s Supper Club to organize opposition.
A Facebook group called “Stop the Menomonie Data Center” has also mobilized residents, amplifying concerns about nondisclosure agreements, the unnamed end user, and the speed of council approvals. One council member attempted a no-confidence vote against the mayor for halting negotiations.
Affected Project/Company:
Proposed Menomonie Data Center, $1.6B investment, developed by Balloonist LLC. End user not disclosed
Opposition:
Stop the Menomonie Data Center: Facebook group coordinating local residents organizing public forums.
Why it matters:
Transparency risk: Reliance on NDAs and shell entities can trigger distrust and local opposition, even after annexation and revenue projections are in place.
Political leverage: Mayoral intervention shows that local executives can unilaterally block or delay projects despite earlier legislative support.
Mentions in the Press
“CoreWeave’s $29 Billion Bet That Its Debt-Fueled AI Boom Won’t Go Bust”
Links
“Louisiana Saturday Night - Meta’s Massive Data Center Development Puts Focus on the Bayou State”
https://rbnenergy.com/louisiana-saturday-night-metas-massive-data-center-development-puts-focus-on-the-bayou-state
“St. Charles County Executive Ehlmann wants middle ground on data center regulation”
https://www.stlpr.org/show/st-louis-on-the-air/2025-09-22/st-charles-county-executive-ehlmann-wants-middle-ground-on-data-center-regulation
“Project Jupiter data center in Santa Teresa approved by Doña Ana commissioners”
https://elpasomatters.org/2025/09/19/project-jupiter-data-center-santa-teresa-approved-dona-ana-commissioners/
“Loudoun transmission line debate aims SCC to respond to data center needs, resident concerns”
https://virginiamercury.com/2025/09/19/loudoun-transmission-line-debate-aims-scc-to-respond-to-data-center-needs-resident-concerns/
“Illinois privacy law drives AI data centers away”
https://www.chicagobusiness.com/technology/illinois-privacy-law-drives-ai-data-centers-away
“Indiana approves expanding Google’s Fort Wayne data center campus onto protected wetlands despite local opposition”
https://www.datacenterdynamics.com/en/news/indiana-approves-expanding-googles-fort-wayne-data-center-campus-onto-protected-wetlands-despite-local-opposition/