The Michigan Public Service Commission is holding its second public hearing to hear from the community about what should be included in electric utilities’ long-range plans.
Those plans look ahead 20 years to detail how regulated electric utilities will meet future power demand in Michigan reliably and most cost-effectively, while also meeting the state's ambitious clean energy goals, which call for net zero carbon emissions by the year 2040.
Environmental groups will hold a "Rally Against Data Centers," and press conference before the 6:00 p.m. hearing in Auburn Hills, to call attention to concerns that power-hungry data centers could threaten the state's electric grid.
Bryan Smigielski of the Sierra Club of Michigan said demand for electricity has never before grown at this pace.
"This is unprecedented. They're trying to build data centers as fast as they possibly can," he said. "Big utilities have what are called economic development pipelines, where large customers like data centers will tell them, 'Hey, we're considering putting a data center in your territory.' And when you add up all of those inquiries [in Michigan], it's over 20 gigawats of electricity demand."
That's roughly equal to the state's total electricity demand right now.
Smigielski said electric utilities may have to build new power plants that burn natural gas, a fossil fuel, in order to create enough electricity for the data centers. That could put the state's clean energy goals out of reach and it could spike residential rates.
Environmental groups want the Michigan Public Service Commission to require utilities to show clear plans with and without data-centers so communities can see what's being built to serve data centers, and they want the plans to keep those potential costs off household bills.
Smigielski said there's also a risk that the technology supporting data centers will change, resulting in data centers closing and leaving Michigan customers bearing the entire cost of the stranded asset.
"That can lead to doubling or even tripling our energy prices, worst case, bankrupting our electric utilities if they don't factor in the right risk," he said.
Data centers also use vast amounts of water, he added, which could threaten aquifers. Smigielski said that should also be something the MPSC should require utilities to monitor.
The Michigan Public Service Commission said the hearing is "your chance to have your say on the state’s assumptions for long-term plans for electric utility reliability and affordability, incorporating Michigan’s new clean energy standard and factoring in renewable energy goals, environmental compliance, electric vehicles, potential data centers and more."
The "Rally Against Data Centers," is at 5:00 p.m. Monday, October 27th, west side of Building F, Oakland Community College - Auburn Hills Campus, at 2900 Featherstone Road, Auburn Hills.
The MPSC hearing is at 6:00 p.m. that evening at the same address, in Room F123 of Building F.
