Michigan City Residents Fight Data Center Project, Raising Environmental and Labor Concerns

MICHIGAN CITY, Ind. – A proposed data center in Michigan City, Indiana, is facing mounting opposition from residents who fear potential environmental and public health consequences, alongside concerns about labor practices. At the heart of the dispute is “Project Maize,” a development spearheaded by Lavender Fields Holdings LLC, which locals suspect is a front for tech giant Google. The Indiana Department of Environmental Management (IDEM) is currently reviewing a draft air permit for the project, triggering a scramble among community members to voice their concerns before a rapidly approaching deadline.

A Tight Timeline Fuels Community Activism

Ashley Williams, Executive Director of Just Transition Northwest Indiana, is leading the charge against the project. She argues the timeline for public comment is unreasonably short, particularly during the holiday season. “They are scrooging our communities during this holiday season,” Williams stated in an email. “Shame on IDEM.” She and other residents are pushing for a 60-day extension to the public comment period and a more accessible public hearing.

IDEM, however, has refused to postpone the December 9th meeting or extend the December 15th deadline for written comments. Natalie Rodriguez, IDEM’s external relations director, explained in an email that the agency is legally obligated to process permit applications within specific timeframes, provided the project meets all applicable regulations. This stance has only intensified the feeling among residents that their voices are not being heard.

The urgency stems from the potential scale of the project. Documents reviewed by the Environmental Law and Policy Center indicate the data center could house 66 diesel-fired emergency generators, with no pollution controls, and 70 “belly tanks” storing over 5,000 gallons of fuel. These generators, used during power outages, are a major source of concern.

Diesel Generators and Air Quality: A Growing National Issue

The reliance on diesel generators for backup power is becoming increasingly common with the proliferation of data centers, driven by the explosive growth of cloud computing and artificial intelligence. According to a report by the International Energy Agency, data centers already account for around 1% of global electricity use, and that figure is projected to rise dramatically. This increased energy demand often leads to a greater reliance on fossil fuel-based backup power.

The potential impact on air quality is significant. The Environmental Law and Policy Center estimates the data center could emit approximately 245 tons of nitrogen oxides and carbon monoxide annually. While the operator has agreed to an annual cap on pollution, Williams worries about the enforceability of these limits without rigorous monitoring and reporting. “Tracking and reporting how many hours the generator will run without proper reporting to IDEM and monitoring, the limit is unenforceable,” she explained.

This concern is echoed by broader trends. The Environmental Protection Agency (EPA) has been increasingly focused on reducing emissions from stationary diesel engines, recognizing their contribution to particulate matter pollution and respiratory health problems. The agency’s regulations require owners and operators of these engines to meet specific emission standards and reporting requirements.

Beyond Pollution: Labor Concerns and Economic Impact

The controversy extends beyond environmental concerns. Local 150, a construction union, has criticized the project for allegedly hiring workers from out of state – Wisconsin, Ohio, and Alabama – instead of prioritizing local and union labor. This has sparked concerns about the economic benefits of the project staying within the Michigan City community.

“Project Maize has received $42 million in tax incentives through the Indiana Economic Development Corporation,” a Local 150 representative stated. “It’s unacceptable that these public funds are being used to benefit workers from other states while local residents are left behind.”

Michigan City Mayor Angie Nelson Deuitch has acknowledged the concerns but maintains the city has limited authority over hiring decisions, as Project Maize is a private development. However, Williams argues the city should be doing more to ensure the project benefits local workers and residents.

A History of Environmental Violations

Adding to the community’s distrust is a recent violation notice issued to Phoenix Investors, the owner of the property, by IDEM on October 9th. The notice cited the presence of trichloroethylene (TCE), a chemical linked to cancer and other health problems, at the construction site. The National Cancer Institute classifies TCE as a known human carcinogen.

“Good-faith development helps communities work together,” Williams previously told the Post-Tribune. “Bad-faith development has neighbors looking over their shoulders.”

The future of Project Maize remains uncertain. As the December 9th meeting approaches, Williams and Just Transition Northwest Indiana are determined to continue raising awareness and advocating for a more transparent and environmentally responsible development process. The case highlights a growing tension between economic development and community well-being, a challenge facing many cities across the country as they grapple with the demands of the digital age.

mwilkins@chicagotribune.com