The long-idle McLouth Steel complex on Jefferson Avenue could soon swap blast furnaces for server racks. A developer has filed plans to turn the former mill at 27800 W. Jefferson into a high‑power "inference" data center that would draw about 100 megawatts from the regional grid. Filings say the project would rely on a closed‑loop cooling system and use an estimated 200 to 500 gallons of water per day. Raeden, the company behind the proposal, is planning an informational session on March 11 where DTE Energy representatives and city planners are expected to field questions from residents.
Site plan and local review
According to the City of Gibraltar, Raeden submitted site plans last Wednesday to reuse the former McLouth Steel building at 27800 W. Jefferson as an inference data center within the existing structure. The notice states that the Planning Commission will review the drawings for compliance with the zoning ordinance. If Raeden requests any variances, those would move beyond the Planning Commission and require review by the Zoning Board of Appeals.
Officials and location
CBS Detroit reports that the site is located less than a mile from the Humbug Marsh Unit National Wildlife Refuge, a detail that is likely to catch the eye of environmental watchers. City officials told the outlet that Gibraltar is not taking a position for or against the project at this stage. CBS Detroit also notes Raeden has scheduled a March 11 informational meeting at the Gil Talbert Community Center, where members of the city's planning department and DTE are expected to be available for questions.
Who is Raeden?
Raeden describes itself as a company that delivers data center, power and connectivity solutions, with a focus on fast‑tracking buildouts of existing industrial properties so they can handle modern power and network demands. The company's website highlights other U.S. projects and leans heavily on themes of strong carrier connectivity and rapid deployment as part of its pitch to potential digital tenants.
Inference versus training
City materials and Raeden's filing refer to the concept as an "inference" data center, which indicates a facility designed to run already‑trained AI models rather than perform the far more energy‑intensive training jobs that tend to dominate AI headlines. Industry guides say inference workloads usually require less sustained compute than training, although a 100‑megawatt facility still represents a major electrical and cooling undertaking. For a more detailed explanation of the difference between training and inference, see Lenovo.
Power and policy context
Michigan has quickly become an active target for large data center projects, and state policy debates along with utility planning have increased scrutiny on how big power users get connected and how those costs are spread. Observers and advocates have urged regulators and local officials to look closely at proposed large power draws because of potential grid stress and the possibility of shifting costs to ratepayers, concerns outlined by Michigan Public.
Next steps for the project
The city's notice explains that the Planning Commission's role is to determine whether Raeden's site plan complies with the zoning ordinance and notes that the zoning code does not require City Council review when a use is otherwise permitted, according to the City of Gibraltar. If Raeden asks for variances or other special approvals, those requests would go to the Zoning Board of Appeals, a step that could lengthen the approval timeline.
Public meeting and how to follow along
Raeden and city staff say they are finalizing details for the March 11 informational session at the Gil Talbert Community Center. CBS Detroit reports that DTE and members of the planning department plan to attend. Neighbors who want to weigh in on issues such as traffic, water use or possible effects on nearby wildlife can bring their questions to that meeting or review the city's posted site plan documents for more specifics on the proposal.
