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Public hearing brings out concerns about AI data centers in Michigan

A man in a dark suit with a backwards baseball cap stands at a podium reading from notes. In front of him, five people sit at tables. The tables are draped in blue banners. On the front, the banners have a green outline of the state of Michigan, and white letters spelling out "MPSC."
Dustin Dwyer
/
Michigan Public
Wesley Watson of the Michigan Environmental Justice Coalition speaks at a public hearing in Grand Rapids for the Michigan Public Service Commission.

Michigan’s top energy regulators heard from the public in Grand Rapids Tuesday evening on long term energy plans for the state.

Utilities are required to submit the plans. But the Michigan Public Service Commission decides the parameters of what the plans must include.

Commissioners have already issued draft parameters. But state law requires them to hold public hearings to gather feedback. The first public hearing was Tuesday in Grand Rapids. A second public hearing is scheduled for October 27 in Auburn Hills.

At the Grand Rapids meeting, a number of people raised concerns about the potential impacts of AI data centers on the state’s power grid. The data centers could require major upgrades to the power grid, but some worried the energy demand wouldn’t materialize. That would leave other ratepayers to foot the bill for the upgrades.

“Data center pipelines are anything but guaranteed because they shrink, move or disappear,” said Tamara Horne, who said she drove from Muskegon to attend the hearing.

Both Horne and Derrell Slaughter of the Natural Resources Defense Council asked commissioners to require utilities to submit plans both with and without data centers factored in.

“This would make cost and resource choices tied to the facilities clear and transparent,” Slaughter said. “If data centers move forward, they must pay the cost of serving their own load.”

The long range plans don’t commit utilities to specific new investments or rate increases. But many at Tuesday’s hearing suggested that the plans could lay the groundwork for projects that could affect the environment and utility bills.

Charles Snedeker told commissioners he came to the hearing on a whim. He said he’s retired, and wanted to make sure they heard from someone who would be impacted by the plans.

“So whatever you folks do, however you decide, just remember that there’s people like me that are just making it, you know. We’re just making it,” Snedeker said. “Keep us in mind.”

Dustin Dwyer reports enterprise and long-form stories from Michigan Public’s West Michigan bureau. He was a fellow in the class of 2018 at the Nieman Foundation for Journalism at Harvard. He’s been with Michigan Public since 2004, when he started as an intern in the newsroom.
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