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Jurisdiction DataMichigan · Georgia · Data Centers

The record is asking about water: cooling commitments as entitlement currency

Saline Township's consent judgment bans high-water-use evaporative cooling at a 1,383 MW campus. DeKalb County is writing water standards into a five-tier data-center code. Cooling technology has become something developers trade for permission.

The consent judgment that ended the Saline Township data-center fight reads mostly like a price list: a $4 million farmland trust, a $2 million community fund, $7 million for the Saline Area Fire Department, a 55-decibel noise limit, Michigan Avenue access only. Then, wedged in among the operating restrictions, a clause about thermodynamics. No high-water-use evaporative cooling. The state called this the largest one-time investment in Michigan history, per Governor Whitmer's October 30, 2025 announcement, and the settlement that authorized it dictates how the buildings are allowed to shed heat.

Sit with that for a second. A five-member township board got a cooling-system specification written into a court order binding a campus with 1,383 MW of contracted power behind it.

The more interesting question is where the clause came from, because the answer is: the developer. The Saline Township record shows Related Digital circulating a project Q&A in August 2025, before any vote, that already promised to avoid high-water-use evaporative cooling and preserve about 200 acres, alongside an initial $3.1 million package for fire services and community investment. The offer did not save them. The board denied the rezoning 4-1 on September 10, with the public record showing concerns about master-plan consistency, emergency response, traffic, noise, water, and rural character. RD Michigan Property Owner I LLC and landowners sued two days later. At the September 24 joint public meeting, the minutes show residents pressing counsel and DTE representatives on cooling, wells, fire protection, and sound. On October 15, the consent judgment entered, and the voluntary promise became an enforceable term.

Offered in August. Ordered in October.

Why is cooling technology an entitlement term now?

Because water is the one input the neighbors can picture themselves competing for. Power arrives on wires from somewhere else and gets fought over in a utility docket. Water comes out of the ground the farm next door also draws from. Evaporative cooling buys thermal efficiency by consuming water; closed-loop and air-cooled designs buy water savings by consuming more energy. Which trade a campus makes used to be a design memo. In front of a rural board, it is now the difference between a project that threatens the wells and a project that does not.

And the Saline record shows the commitment getting instrumented, which matters more than the extraction itself. By January 21, 2026, township advisory updates reported that EGLE had issued wetlands permits and that monitoring-well permits had been obtained. A monitoring well is the enforcement mechanism for a water promise. That is what makes cooling commitments real currency rather than hearing-room theater: they are legible, and they stay checkable years after the hearing-room applause fades. A community fund gets spent. A no-evaporative-cooling clause sits in the judgment forever.

What happens in a county with no water rules at all?

You get DeKalb County, Georgia, which is the control group for this experiment. DeKalb had no data-center ordinance of any kind. Facilities were treated as generic light industrial uses, which meant no noise limits, no cooling requirements, no separation distances, and county zoning-certification letters issued in 2024 for two sites, at 2235 Bouldercrest Road and 3600 International Park Drive, with no public input at all. When residents found out, the vacuum filled fast. On July 8, 2025, the commission voted 4-3 for a 100-day moratorium on new data-center applications. District 6 Commissioner Ted Terry published his own impact analysis covering water use, power demand, and noise, and that analysis became the intellectual scaffolding for a draft five-tier ordinance setting size, location, spacing, and noise, power, and water management standards. On December 16, 2025, the extension through June 23, 2026 passed unanimously. All three original no votes flipped.

Jurisdictions without water rules do not stay jurisdictions without water rules.

That is the sequence the DeKalb case file documents, and the direction of travel matters for anyone screening sites: the absence of a cooling or water standard in the local code is not permissiveness. It is unpriced risk. The first contested application triggers the rule-writing, and the rules get written by whoever showed up angry. Our read on a DeKalb site after the moratorium passed sits at 2 out of 100, in a county that had been mailing out permissive zoning-certification letters less than two years earlier. Any developer who filed there after July 2025 watched the application freeze, with option payments and diligence spend stranded behind a pause that was visible in the commission's voting records before the first letter went out.

Social Circle, Georgia ran the utility-burden version of the same story. The city council approved a 151-acre data-center rezoning 2-1 on November 6, 2025, over its own planning commission's denial recommendation. At that hearing, resident Christina Studdard told the council the community had no voting voice on the projects being approved, and another speaker warned there would be "a special place in hell" for anyone who voted for it. One resident documented an electricity bill that rose from $114 a month five years earlier to $193 in the month of the hearing. Twelve days later the same council approved a 96-acre special use permit. Then the Georgia Department of Community Affairs threatened to decertify the city's Qualified Local Government status over the Stroud's Creek annexation, and Newton County filed for arbitration. The Social Circle record reads as a warning: the public is now pricing utility burden, water or power or rates, as a single grievance, and a 2-1 council majority is a thin wall to hide behind.

How should a developer price a cooling commitment?

Put it in the application, not the settlement. Saline's developer offered the water concession in August and still ate a denial, a lawsuit, and a $14 million package, but the early offer is what set the term structure of the eventual judgment, and the judgment is what let site work proceed: pylons finished and gravel hauling roughly 60% complete by the township's March 18, 2026 update. The alternative timeline, where the applicant defends evaporative cooling at the podium and concedes it in month nine, costs the same water and buys none of the credibility.

Then treat the commitment as capex, honestly. A no-evaporative-cooling term at 1,383 MW is a real engineering constraint with a real energy penalty, and a pro forma that books the community fund but not the cooling delta is lying to its own investment committee. The data-center diligence question has quietly become two questions: can you get the power, and what will you promise about the water to be allowed to use the power.

Notice, too, where each promise lives. The Saline power terms were settled in a state docket: the Michigan Public Service Commission approved DTE's special contracts 3-0 on December 18, 2025, with a 19-year minimum duration and an 80% minimum billing demand attached. The water terms live in a local court order enforceable by a township. Two forums, two enforcement mechanisms, one campus. A diligence file that reads one and skims the other has read half the deal.

My bet, stated so you can check it: within 24 months, a signed cooling specification shows up in large data-center rezoning applications as routinely as a traffic study, and applications that omit one in agricultural or water-sensitive counties get treated by staff as incomplete drafts. If 2028 arrives and cooling terms are still appearing only at the settlement stage, after the denial and the lawsuit, I called this wrong. Read the next consent judgment that crosses your desk. The water clause will be in there, and it will have been drafted by the side that thought about it first.

This analysis is a source-cited research summary drawn from public records, not legal advice. It can contain errors and should be verified independently before any investment decision.

Before the diligence clock starts

This is the same read RealClear runs against a live site: zoning, approval pathway, infrastructure, and community posture — every finding pinned to a named source.

Source-cited research summary. Not legal advice. Verify independently before making investment decisions.