The expansion of infrastructure to support artificial intelligence has raised alarms in communities across Michigan. Residents are wary that their surroundings are either slated for data center construction or could be soon — so much so that the area covered by temporary blocks on data center construction now adds up to the size of Rhode Island.
In Michigan, about 50 communities have put temporary data center limits in place, lasting anywhere from 180 days to a full year, according to reporting from The Cool Down.
Michigan is particularly attractive to tech companies looking to build these data centers because of its access to fresh water. Data centers run 24/7, which means they are generating heat that must be cooled. The Great Lakes hold 20% of the world’s surface freshwater, But due to groundwater shortages already happening across the state, this abundance is deceptive.
Additionally, Michigan Governor Gretchen Whitmer has spearheaded data center growth in Michigan, signing laws that would “eliminate Michigan’s 6% sales and use tax on eligible data center construction and equipment purchases,” according to the Michigan Economic Development Corporation. These laws reduce the tax burden for qualified entities, with the aim of bringing significant investment into the state, and potentially creating jobs for Michiganders.
Michigan officials including Whitmer recently faced backlash over a controversial data center project in Saline Township known as “The Barn.” She and tech company leaders broke ground in a shovel ceremony on June 1 to kick off construction of what the companies describe as a 2.2 million square foot data center that would be the largest in Michigan.
News outlets have tallied at least 16 sites in Michigan where large data centers are proposed or under development by companies including Microsoft and Google, with some in rural areas and some looking into metro Detroit.
But as investors stake out land, some officials, like Michigan Attorney General Dana Nessel, have sought to limit the impact their projects have on energy customers — most notably in the case of the Saline Township data center.
Utilities, such as DTE Energy, which plans to supply power to the Saline Township project, can get their cases approved by the Michigan Public Service Commission (MPSC) “ex-parte,” if they show their plans won't affect prices for consumers. Ex-parte cases can progress through the approval process without consideration of briefs, including objections, from outside individuals and groups.
This process has raised concerns about whether the utilities will charge consumers for electricity used by data centers, due to the fact some of these projects are estimated to consume as much energy as DTE Energy’s Fermi nuclear power plant.
Data center opponents also argue the advertised return on investment to Michigan isn’t guaranteed. According to Planet Detroit, “Michigan passed new incentives in 2024 that could cost the state $90 million by 2065, requiring only 30 jobs at 150% of local median wage for eligibility. In reality, most data centers employ between 10 and 100 people, with construction offering the bulk of temporary employment. One expert pegs the national average cost per subsidized data center job at $2 million.”
Energy database company Cleanview keeps a map of where data centers are located. That map indicates there are currently two operating data centers in Michigan, but that number is set to grow, with more under construction and still more seeking approval to start.
DTE Energy is among Michigan Public’s corporate sponsors.
