By Phil Santer, Senior Vice President & Chief of Staff, Ann Arbor SPARK
Ann Arbor SPARK has been following the discussion around the proposed data center in Saline Township and similar projects across the state. Given the community’s interest, I would like to provide some additional context on the potential fiscal impact, while also acknowledging that there are broader questions to consider.
21st Century Infrastructure & Our Region
Just as past generations built the roads, utilities, and facilities that shaped today’s economy, data centers represent critical 21st-century infrastructure. Regions across the country are already hosts for these projects because they support the digital economy and long-term growth. We do not want to be the only region without this type of investment. Having a data center positions Saline Township, and the broader Ann Arbor region, within a growing and necessary category of development.
School Funding Impact
This kind of investment would produce a significant amount of tax revenue for the community. At the investment levels presented, the developers estimate that the project would generate about $8 million annually in property taxes for school-related capture. This estimate reflects the tax obligations at full buildout.
While a portion of these funds flows through the State, Saline schools directly benefit from several millages currently in place. Based on our analysis, the conservative annual school-related revenue would include:
● School Debt (bonds): Over $2.9 million
● Washtenaw ISD: Over $2.1 million
● Saline Sinking Fund: Over $136K
● Saline CARES Millage: Over $194K
These millages are secure for as long as they were approved by the voters. Unlike other types of school funding, the State cannot reduce or reallocate them. This means reliable, ongoing support for schools while easing the tax burden on local homeowners.
Securing an Increased Tax Base for the Future
A stronger tax base creates broader benefits for the community. As the School District, ISD, or others consider future millages, large taxpayers like a data center make it possible to raise the same dollars at a lower rate, or produce additional dollars, without placing the full cost on residents.
And beyond the schools, the project’s tax revenue would also support other services such as the library, fire protection, and roads in a significant way, given the scale of investment under consideration.
Other Considerations
A tremendous amount of progress has already been made in addressing questions and concerns about the project. We’re encouraged by the Township taking the next step in reviewing the plans and are excited about the opportunity this project represents for the community. These conversations help ensure the development moves forward in a way that benefits everyone. Taken together, the scale of investment represents both a major fiscal opportunity and an important step in ensuring our region keeps pace with modern infrastructure needs.
Learn more about the role of data centers in our region here.
