PivotIntel Weekly Intelligence Report #5

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December 21, 2025

Bottom Line Up Front

Oracle/OpenAI data centers approved in Michigan (December 18) while $383M power grid verdict reveals infrastructure fragility and Great Lakes water levels hit decade lows. DeepSeek faces potential US military designation as AI geopolitics intensify. 182,963 tech layoffs in 2025.

Platform Update: Daily intelligence briefs are discontinued. I needed that time for app development and in-depth investigative pieces. The PivotIntel app (pivotintel.org/app) provides the same real-time intelligence tracking – it’s a work in progress, but functional. Weekly newsletters continue every Sunday.

I am still planning on increasing to gather more intel from the Great Lakes region during the first quarter of 2026 as we continue to build data around Michigan in particular.

This Week’s Intelligence

INFRASTRUCTURE DEVELOPMENTS

Michigan Data Centers Approved Amid Grid Concerns

Michigan Public Service Commission approved DTE’s contracts for the Saline Township Oracle/OpenAI data center on December 18, despite widespread community opposition. The $7 billion, 1.4-gigawatt facility will proceed after Saline Township was effectively overruled through legal pressure.

The pattern: Recent Michigan data center projects have proceeded despite community resistance. Saline Township faced strong local opposition but was ultimately overruled through a developer lawsuit and settlement. Lyon Township (Verrus/Alphabet, 1.8M sq ft) was conditionally approved in September without public hearings – residents say they were “blindsided” and only learned about it in December. Van Buren Township (Panattoni, 1GW proposal) faces similar dynamics – township officials say it’s “likely out of their hands” due to zoning that allows data centers “by right.”

What this reveals: Local authority has limits when state economic development interests align with well-resourced developers. Community resistance alone rarely stops projects – but strategic negotiation can secure better terms through Community Benefit Agreements.

This comes as Consumers Energy and DTE Energy won a $383 million verdict against a contractor for botching the rebuild of the Lake Michigan Generating Station in Ottawa County. The failed rebuild highlights Michigan’s existing grid reliability problems before adding massive data center loads.

The disconnect: Michigan can’t successfully rebuild one power plant without $383 million in damages, yet is approving data centers that will stress an already fragile grid. The infrastructure failures give communities concrete leverage in negotiations – if used strategically rather than oppositionally.

Source: MLive, Michigan PSC records, Saline Township records, Lyon Township records, Van Buren Township records

Great Lakes Water Levels at Decade Lows

All Great Lakes except Erie have fallen to their lowest levels in at least a decade, according to the International Joint Commission’s February 2025 update. Lake Superior is at its lowest since 2013, Michigan-Huron since 2014, and Ontario since 2003. Drought conditions accelerated the seasonal decline.

Why this matters for data centers: A medium-sized data center consumes up to 110 million gallons of water annually for cooling – equivalent to 1,000 households. Larger facilities can consume 5 million gallons daily. With Great Lakes at decade lows and Michigan approving multiple hyperscale data centers, water availability becomes a critical infrastructure constraint.

Hyperscale Data center water consumption:

  • Single facility: Up to 5 million gallons/day
  • Google’s facilities: 8.1 billion gallons in 2024 (nearly doubled from 2021)
  • Each 100-word AI prompt: Approximately one bottle of water (519ml)

Community negotiation angle: Water rights and consumption limits should be mandatory components of Community Benefit Agreements. Low lake levels give townships leverage to demand water conservation commitments, alternative cooling systems, or compensation for water usage.

Sources: International Joint Commission, NOAA Great Lakes Environmental Research Laboratory, Environmental and Energy Study Institute

POLICY DEVELOPMENTS

DeepSeek May Face Chinese Military Designation

US lawmakers are proposing to designate DeepSeek as a Chinese military company, joining companies like Huawei under heightened scrutiny. This follows the broader pattern of US-China tech decoupling and has implications for companies using DeepSeek’s AI models or infrastructure.

Employment implications: Workers at companies dependent on Chinese AI infrastructure face increased uncertainty as geopolitical tensions reshape the AI landscape. This accelerates the push toward domestic AI capabilities and creates opportunities in US-based AI infrastructure development.

Infrastructure angle: Designation could accelerate domestic data center construction as companies seek alternatives to Chinese AI services, potentially increasing pressure on Michigan’s grid and water resources.

ALTERNATIVES TO HYPERSCALE

Beyond Hyperscale: Community-Focused Options Exist

Our December 15 investigative piece examines alternatives to hyperscale data centers that better serve community interests. Edge computing, regional facilities, and community-owned infrastructure offer employment, revenue, and control without the massive resource consumption of hyperscale projects.

Key findings:

  • Edge data centers provide better job-to-impact ratios
  • Community ownership models capture more local value
  • Distributed infrastructure reduces single-point risks
  • Regional facilities match local economic scale

Read the full analysis: https://theopenrecord.org/2025/12/15/beyond-hyperscale/

Why this matters now: As Michigan townships negotiate with Oracle, OpenAI, Microsoft, and others, they should understand that hyperscale isn’t the only option. Communities have leverage to demand better alternatives that serve local interests rather than just facilitating tech giants’ infrastructure needs.

EMPLOYMENT SNAPSHOT

Tech Layoffs: 182,963 in 2025 (ongoing tracking)

The disconnect: Tech companies claim AI will create jobs while simultaneously cutting human workers and building automated infrastructure. Data centers create minimal permanent employment (typically 30-50 workers) while consuming resources that could support thousands of households.

Worker impact: The acceleration from Chinese AI restrictions to domestic infrastructure buildout creates short-term construction opportunities but limited long-term career paths. See Under the Radar newsletter for career transition strategies.

MICHIGAN INFRASTRUCTURE TRACKER

Tax Subsidy Context: Michigan’s 2024 law exempts data centers from 6% sales/use tax on equipment through 2050. For a $7 billion project, that’s ~$420 million in tax breaks. Between 2020-2024, smaller data centers avoided $13 million in taxes.

Active Projects:

Saline Township (Oracle/OpenAI “Stargate”):

  • Status: Approved Dec 18 despite township lawsuit opposition
  • Investment: $7 billion
  • Power: 1.4 gigawatts
  • Tax subsidy: ~$420 million (6% exemption)
  • Permanent jobs: ~50
  • 💰 Cost per job: $8.4 million in tax breaks
  • Reality: Township sued, settled under pressure

Van Buren Township (Panattoni Data Center Group):

  • Status: PROPOSED, not yet approved – decision expected Jan 14, 2026
  • Developer: Panattoni (no tenant identified yet, likely Oracle/OpenAI or similar)
  • Power: 1 gigawatt
  • Tax subsidy: Would qualify for 6% equipment exemption if approved
  • Permanent jobs: ~30-50 (estimated, typical for 1GW facility)
  • 💰 Projected cost per job: $6-8 million (based on similar projects)
  • Reality: Zoned “by right,” township says “likely out of their hands”
  • Community response: Strong opposition at Dec 16 meeting, 100+ residents

Lyon Township (Verrus/Alphabet):

  • Status: Conditionally approved Sept 8, 2025 (planning commission)
  • Developer: Verrus (backed by Google parent Alphabet)
  • Size: 1.8 million sq ft, 172 acres
  • Investment: Estimated $4 billion
  • Power: Unknown (under discussion with DTE)
  • Tax subsidy: Would qualify for 6% equipment exemption
  • Permanent jobs: ~50-100 (estimated for facility this size)
  • 💰 Projected cost per job: $8-10 million (based on $4B investment)
  • Conditions still needed: Sound study (due 2027), detailed engineering, agency approvals
  • Reality: Approved without public hearings (permitted use in industrial zone)
  • Community response: Residents say they were “blindsided” – learned about it in December

Southfield (Microsoft/OpenAI):

  • Status: Site plan approved Dec 15
  • Power: 100MW
  • Tax subsidy: Would qualify for 6% exemption
  • Permanent jobs: ~30-50
  • 💰 Projected cost per job: $3-5 million (smaller facility)

Augusta Township:

  • Status: Various proposals under review
  • Details: Limited public information

Compare to alternatives:

  • Community college funding: ~$50,000 per student creates transferable skills
  • Housing First programs: ~$15,000-$25,000 per person, proven outcomes
  • Small business grants: $50,000-$500,000 creates 3-10 jobs each
  • Infrastructure investment: Jobs + permanent community asset

The math: $8.4 million per job could fund 168 community college students, 336 Housing First placements, or multiple small businesses creating dozens of jobs each.

DATA YOU CAN USE

Water Consumption by Data Center Size:

  • Small (100K sq ft): 18,000 gallons/day = 6.57M gallons/year
  • Medium: 110M gallons/year (1,000 households equivalent)
  • Large hyperscale: 5M gallons/day = 1.8B gallons/year (10,000-50,000 people equivalent)

Power Consumption:

  • 800MW (Oracle/OpenAI Michigan total) = entire mid-sized city
  • Google, Microsoft, Amazon each operate multiple facilities this size globally

Employment Reality:

  • Construction: 500-2,000 temporary jobs (18-24 months)
  • Permanent: 30-50 per facility
  • Cost per permanent job: Often $5M+ in tax incentives

Compare to alternatives:

  • Community college funding: $50K per student creates transferable skills
  • Housing First programs: $15K-$25K per person, proven outcomes
  • Infrastructure investment: Jobs + community asset

COMMUNITY NEGOTIATION TOOLKIT

Questions to Ask Data Center Developers:

Water:

  1. Total annual water consumption (gallons)?
  2. Cooling system type (evaporative vs. closed-loop)?
  3. Source of water (municipal, well, lake)?
  4. Backup plan during drought conditions?
  5. Will you commit to recycled/gray water where possible?

Power:

  1. Peak and average megawatt consumption?
  2. Grid upgrade costs (who pays)?
  3. Impact on residential/commercial rates?
  4. Renewable energy commitment?
  5. Backup generation capacity?

Employment:

  1. Construction jobs (number, duration, local hiring percentage)?
  2. Permanent jobs (number, salary ranges, required skills)?
  3. Training programs for local residents?
  4. Union agreements?

Community Benefit:

  1. Tax revenue projections (realistic, not optimistic)?
  2. Infrastructure improvements (roads, water, sewer)?
  3. Impact fees for community services?
  4. Transparency commitments (reporting, public access)?

Environmental:

  1. Environmental impact assessment (independent)?
  2. Noise levels and mitigation?
  3. Heat island effects?
  4. Long-term decommissioning plan?

Leverage: Grid fragility, water scarcity, and community alternatives give townships negotiating power. Use it.

WHAT TO WATCH

Next 30 Days:

  1. Van Buren Township decision – Jan 14, 2026 planning commission meeting
  2. Southfield implementation – Site plan approved Dec 15, construction timeline
  3. Grid upgrades – Who pays for infrastructure to support 2.4+ GW (Saline 1.4GW + Van Buren 1GW)?
  4. Water permits – How will low lake levels affect approvals?
  5. Community organizing – Can townships develop better negotiation strategies after Saline was overruled?
  6. DeepSeek designation – Timeline and domestic infrastructure response

Longer-term:

  1. Great Lakes Compact – Will water usage trigger interstate/international water rights issues?
  2. Grid reliability – Can Michigan support data center boom without blackouts?
  3. Employment reality – Will promised jobs materialize or follow historical pattern of minimal permanent hiring?

RESOURCES

Intelligence Sources:

Analysis:

Community Organizing:

  • Study what happened in Saline (opposition overruled)
  • Understand legal limits of local authority
  • Focus on negotiation leverage, not just resistance
  • Attend township meetings
  • Document commitments vs. reality
  • Share information with neighboring communities

METHODOLOGY

Intelligence gathered from: Official government sources (IJC, NOAA, Army Corps), township meeting records, utility filings, environmental impact assessments, academic research (EESI, University of Tulsa), industry reporting (MLive, Bridge Michigan), and tech company disclosures.

All claims backed by primary sources. Where estimates are used, they’re noted as such. Confidence scoring available in PivotIntel app.

NEXT WEEK

PivotIntel Weekly publishes Sundays at 8am. Under the Radar (career intelligence) publishes Fridays at 8am.

Focus: Tracking Michigan data center approvals, grid capacity analysis, water rights implications.

Questions? Intelligence tips? Community organizing stories? Email: angela@theopenrecord.org

About PivotIntel: Infrastructure intelligence for communities navigating AI development. Focus: data centers, power grid, water resources, employment reality, community leverage.

Published by The Open Record L3C | theopenrecord.org

All sources archived via Wayback Machine for permanent verification.

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