University Claims Withholding Water From Nuclear Weapons Data Center Is ‘Unlawfully Discriminatory’ to Data Centers
The University of Michigan has sent a legal threat over a yearlong pause that would prevent water hookup to a proposed nuclear weapons research and AI data center. Los Alamos National Laboratory and the University of Michigan are looking to build a $1.2 billion, 220,000 square foot data center in Ypsilanti Township. On April 22, the Ypsilanti Community Utility Authority (YCUA) passed a 365-day moratorium on the delivery of water to hyperscale data centers in the area while it conducted environmental sustainability and long-term water use studies.
The University has objected, stating that the moratorium is “unlawfully discriminatory” against data centers. According to a copy of the letter obtained by 404 Media, the university feels the moratorium would be legally invalid because it does not link to legitimate utility or public health needs such as capacity constraints, public health issues, or financing challenges. The University argued that the area has plenty of water and that YCUA leadership had confirmed in 2025 that the data center’s proposed use of 200,000 gallons a day were within its 8-10 million gallon per day capacity.
The letter also cited legal precedents and stated that courts would likely not be on Ypsilanti’s side. The University claimed that the moratorium singles out data centers by label rather than utility impact and is discriminatory to other users who consume available capacity while studies determine if there is sufficient capacity for its proposed facility.
The University requested that YCUA refuse to issue any sector-specific moratorium, instead basing service decisions on documented utility factors applied evenhandedly through existing permitting and technical review processes. If these legal requirements are not followed by YCUA, the University reserves the right to pursue all rights and claims for necessary relief.
In response, Luther Blackburn, YCUA’s executive director, confirmed that he had received a legal communication from the university but stated that YCUA has acted lawfully and in accordance with industry best practices by issuing the moratorium. He also noted that YCUA leadership has publicly stated that serving the University’s proposed facility would not affect the authority’s ability to provide or treat water.
Key Takeaways
- The University of Michigan is objecting to a yearlong pause on water delivery for a proposed nuclear weapons research and AI data center in Ypsilanti Township.
- The moratorium, passed by the Ypsilanti Community Utility Authority, would prevent water hookup to the data center while environmental studies are conducted. The University claims this discrimination against data centers is illegal.
- YCUA leadership has confirmed that the proposed facility’s water use is within its capacity and could even help mitigate overall utility costs.
Originally published at 404media.co. Curated by AI Maestro.
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