News Summary
Microsoft has purchased 316 acres of land for $45.3 million in Gaines Charter Township, aiming to potentially develop a data center. This strategic acquisition aligns with plans to transform the Greater Grand Rapids area into a tech hub. While specifics are pending, local officials anticipate regulatory discussions and community planning measures as the township reviews a non-disclosure agreement. This development signifies Microsoft’s commitment to expanding its data center footprint, joining other industrial interests in the area.
Gaines Township, Michigan – Microsoft has acquired 316 acres of land in Gaines Charter Township, Kent County, for $45.3 million, signaling potential plans for data center development in the area. The property, situated at the northwest corner of Patterson Avenue and 76th Street, lies just south of Grand Rapids.
This newly purchased site was previously owned by Steelcase Inc., a company that has been shedding excess land in the West Michigan market. Although Microsoft has not yet revealed any specific development plans for the land, the company is being guided by economic development organization The Right Place Inc., which has assisted in evaluating the site’s suitability for potential data center deployment.
According to The Right Place Inc., this acquisition aligns with a long-term strategy aimed at transforming the Greater Grand Rapids area into a prominent tech hub in the Midwest over the next decade. Community development officials in Gaines Township, such as the community development director, noted that Microsoft has yet to submit conceptual plans or initiate discussions with local township leaders regarding the future of the property.
The township is currently reviewing a non-disclosure agreement concerning Microsoft’s acquisition, indicating that further details on the project may be forthcoming. It should be noted that data centers are permitted under the light industrial zoning category in the township, which is aimed at minimizing any potential nuisance factors associated with such developments.
As the Gaines planning department looks ahead, they plan to manage any data center growth through screening and landscaping requirements to ensure the developments are in harmony with the community. Moreover, there has been a notable interest from other industrial entities in parts of the former Steelcase site following its rezoning, which poses additional considerations for local growth.
Advantage Commercial Real Estate is also monitoring the Steelcase property, tracking smaller parcels of land that may attract various clients interested in industrial space, thereby hinting at broader industrial opportunities in the region.
The significance of Microsoft’s purchase extends beyond immediate land acquisition, as it alters the availability of land for other local development projects, according to experts in commercial real estate. The area is already seeing the presence of data-focused companies, with nearby data-storage firm Switch having established a facility in the township in 2017, indicative of the region’s capability to support data center endeavors.
In recent developments, Michigan lawmakers have been contemplating tax incentives for substantial investments like data centers, although relevant legislation has yet to reach Governor Gretchen Whitmer. Additionally, Gaines Township also serves as a wholesale water customer of the city of Wyoming, which could potentially streamline utilities for future data center initiatives.
Microsoft is actively expanding its data center footprint, having recently withdrawn plans for a data center site in Ohio while concentrating on new projects in Virginia and Finland. Currently, construction is ongoing for a data center in Manassas, Virginia, with plans well underway for another center in Vihti, Finland.
This acquisition by Microsoft, alongside other industrial interests and ongoing legislation discussions, highlights the ongoing evolution of Gaines Township as a prospective site for technology and data-focused investments.
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Additional Resources
- Wood TV News
- Wikipedia: Microsoft
- Crain’s Grand Rapids
- Google Search: Microsoft data centers
- Data Center Dynamics
- Google Scholar: Microsoft data centers
- Fox 17 Online
- Encyclopedia Britannica: Data centers
- Crain’s Grand Rapids (Second Property)
- Google News: Microsoft Gaines Township
