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(Source: https://archive.ph/Kiyn9)

> The commission rejected the plan to rezone the farmland [that would allow the data center to be built]. The township board followed suit, voting 4–1 to deny it. But locals quickly discovered that amid the frenzied AI infrastructure gold rush, “no” does not always mean no.

> Two days later, on Sept. 12, Saline Township was sued by Related Digital and the site’s landowners. Their lawsuit alleged “exclusionary zoning”—that the community had unreasonably barred a legitimate land use under Michigan law, and it hinged on the fact that Saline Township had no land zoned for industrial use, and that a data center qualified as a “necessary” use that could not be excluded altogether.

> The lawsuit underscored the township’s limited leverage. Even if officials had fought it, their lawyers advised them, the project could likely have moved forward via other avenues, such as partnering with an institution like the nearby University of Michigan, which can build projects that are not subject to local zoning in the same way as private developments. Meanwhile, a prolonged legal battle against well-resourced developers risked significant costs for the township, without securing concessions.

> Lucas, the town’s attorney, says the township board had little choice and did its best to be transparent. It was “between a rock and a hard place,” he said. “I’m not sure there were any good solutions.” Within weeks, the township had settled: It signed a court-approved agreement allowing the project to proceed, and construction began soon after.

> In exchange, the township secured roughly $14 million in community benefits—a relatively small sum in the context of a multibillion-dollar project, but more than 10 times its roughly $1 million annual budget. It includes funding for farmland preservation, local projects, and fire departments; along with a series of environmental and operational limits: restrictions on water use, noise caps, preserved agricultural land, and limits on expansion.

> David Landry, the attorney who represented Saline Township in the Related Digital lawsuit, told Fortune that he stands by his recommendation that the board settle with the developer. “The zoning power of any municipality—a township, a city, a village—is not absolute,” he explained. “In this case, exclusionary zoning was substantive—the municipality has to have a reason to say no. They just can’t say, ‘We don’t want it.’”

> Sarah Mills, a professor at the University of Michigan who studies land use planning, agreed that the town had few good options once the lawsuit was filed. “States determine how much authority local governments have in zoning, and those systems vary widely,” she said. “What local governments can do through zoning is highly controlled and regulated by the state.” Local governments are also often strapped for cash, making it difficult to defend against zoning challenges, she added.

> Marion, the township clerk and sole board member who voted in favor of the proposal, said this reality was on her mind when she voted yes. It wasn’t because she favored a data center, she said, but because she did not believe the town could win in a showdown with Related Digital. “They were doing studies,” she said. “They were pulling permits.” Township attorneys and consultants had warned that a denial could trigger a lawsuit—an outcome Marion said felt intimidating. “Everything was drafted and filed with the county within two days of the meeting,” she said of the lawsuit. “They had this all prepared.”

> If the township had continued to fight and lost the lawsuit, Marion said, homeowners could have been on the hook for tens of thousands of dollars in tax assessments to pay for the legal battle. “The insurance company was only going to pay for an attorney to defend us up to so much money if we decided to fight it,” she said.