Crypto Mining Rules Tightened as Michigan Township Approves Big Solar Project

A rural Michigan township has approved a large solar energy project but is now moving quickly to tighten rules on crypto mining and data centers, highlighting a growing clash between local governments and state regulators over who controls clean energy and high-tech development.

The Headland Solar Project, developed by Ranger Power LLC, received conditional approval from Cohoctah Township on September 15, 2025, after months of tension over local versus state authority. The 220-megawatt project spans 2,415 acres across Cohoctah and Conway Townships and will eventually be owned by Desri LLC.

Local Control Fight

Town officials said the solar developer resisted providing key reports—like groundwater and security plans—claiming state law did not require them. Noise limits were also a flashpoint: Michigan’s renewable energy rules allow up to 55 decibels, while Cohoctah’s ordinance caps sound at 40 during the day and 35 at night. The company refused to meet the lower local limit, agreeing only to comply with the state standard.

The project was approved with several conditions, including deeper burial of power lines, stronger fire safety measures, and a 125% performance bond to cover decommissioning costs. Construction is expected to begin in 2027, with commercial operations in 2029.

New Crackdown on Crypto Mining

Within weeks of the solar approval, the township introduced new rules aimed at data centers and cryptocurrency mining. The draft ordinance, discussed at an October 2 meeting, sets strict limits on noise and power use and requires all transmission lines to be buried underground. It also mandates fireproof equipment housing and compliance with multiple environmental regulations.

Town leaders said the move is meant to protect residents from noise, power strain, and environmental risks tied to both large-scale energy and digital infrastructure projects. The proposal specifically names Artificial Intelligence (AI) data centers and crypto mining facilities, restricting them to special-use zones.

A joint statement from Cohoctah and Conway Townships said the Headland Solar decision proved that local governments can manage renewable energy responsibly, but called state law a “one-size-fits-all solution” that weakens local control.

The debate in this small Michigan township reflects a larger national trend: local governments are increasingly pushing back against state preemption laws as new industries—from clean energy to crypto mining—reshape rural economies.