University Claims Withholding Water From Nuclear Weapons Data Center Is ‘Unlawfully Discriminatory’ to Data Centers

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.

Luther Blackburn, YCUA’s executive director, told 404 Media that the organization had no comment on potential or pending litigation, but did confirm that he’d received a legal communication from the university. “YCUA staff are working on a Request for Proposal to complete the investigations and studies outlined in the moratorium,” he said. “I believe YCUA has acted lawfully and in accordance with industry best practices by issuing the moratorium.”

University’s Response

The University disagreed, arguing that the moratorium was “unlawfully discriminatory” to data centers. The letter cited various legal precedents, stating that a sector-specific moratorium would be legally invalid because it was unrelated to any documented utility or public health needs. The University argued that YCUA had no capacity constraints and claimed that serving its proposed facility would not affect the authority’s ability to provide or treat water.

“The record contains no evidence supporting any such YCUA capacity constraint,” the letter said. “To the contrary, YCUA’s leadership has publicly stated that serving the University’s proposed facility would not affect the authority’s ability to provide or treat water.”

YCUA’s Perspective

“Adding the data center as a customer would help mitigate overall costs by improving efficiency and cost distribution,” Luther Blackburn said. “In addition, YCUA leadership has stated that serving the University’s project would likely help mitigate overall utility costs by improving efficiency and cost distribution.”

University’s Legal Threat

The letter quoted Blackburn as saying he had confirmed in 2025 that the data center’s proposed use of 200,000 gallons a day were within YCUA’s 8-10 million gallon per day capacity. The University then asked the YCUA not to pass a moratorium and promised to “pursue” the matter.

“The University respectfully requests that YCUA refuse to issue any sector-specific moratorium, instead basing any service decisions on documented utility factors, applied evenhandedly through existing permitting and technical review processes,” the letter said. “If these legal requirements are not followed by YCUA, the University reserves the right to pursue all rights and claims for necessary relief.”

The University of Michigan did not return 404 Media’s request for comment.

Data centers arewidely unpopular in the United States. They often cause noise pollution, affect water quality, and drive up utility bills for their neighbors. Local opposition to the Ypsilanti Township data center has been compounded by its connection to America’s nuclear weapons industry.

Key Takeaways

• The University of Michigan has threatened legal action over a yearlong pause preventing water hookup to a proposed nuclear weapons research and AI data center.
• The Ypsilanti Community Utility Authority (YCUA) passed a 365-day moratorium on the delivery of water to hyperscale data centers in the area while conducting environmental sustainability and long-term water use studies.
• The University argued that the moratorium was “unlawfully discriminatory” to data centers, citing various legal precedents.