Raeden Says Michigan Moratorium Unlawfully Halted Gibraltar Data Center Project

Data center developer Raeden has sued Gibraltar, Michigan, arguing that the city’s recently imposed moratorium unlawfully blocked its proposed 100MW data center. Raeden, backed by landowner Cal Realty, said the facility at the former McLouth Steel site was permitted under existing zoning rules. The company submitted its application in February 2026, before the city approved the moratorium on March 9, banning data center development.

According to reporting from CBS news, the lawsuit claims that the “timing, text, and surrounding circumstances establish that the moratorium was adopted specifically to suspend or defeat review of plaintiffs’ pending application.”

“The moratorium purports to amend the zoning ordinance by prohibiting the ‘establishment and use’ of data centers within the city, thereby designating that no zoning district is appropriate for such use. There is nothing in the city’s charter that requires or permits zoning ordinance amendment by resolution.”

The lawsuit claims the moratorium violates Gibraltar’s zoning ordinance and the Michigan Zoning Enabling Act, which restricts local governments from completely banning land uses. The project has faced protests from Gibraltar residents. Raeden planned to source power from DTE and install 35 backup diesel generators. Raeden also said the facility would use 200–500 gallons of water daily and cover infrastructure, renovation, and remediation costs. Michigan is also considering a statewide data center moratorium under House Bill 5594.