LANSING, Mich. (WZMQ) – A new coalition made up of business leaders, utilities, labor unions, and researchers is launching to help Michigan communities evaluate the growing number of data center proposals across the state.
The group, Michigan for Responsible Data Centers, says its goal is to provide clear, fact-based information on the potential economic, environmental, and infrastructure impacts tied to the large-scale developments.
“Communities deserve fact-based information so they can make informed decisions about projects that may shape their local economies for decades,” said Jim Holcomb, president and CEO of the Michigan Chamber of Commerce.
The launch comes as data centers, large facilities that store and process digital information, become increasingly common nationwide. In Michigan, proposals have sparked debate in several communities, including in mid-Michigan, where residents have raised concerns about water use, energy demand, and long-term value.
Across the country, residents living near data centers, particularly in Virginia, have reported increases in utility bills, depleted aquifers, and noise pollution from the centers’ cooling systems and generators.
Coalition members say concerns that those issues could be seen in Michigan if more data centers are built are valid, but can be addressed through existing regulations and modern technology.
“With careful planning and site selection, data centers can address common concerns around water consumption, energy use, and environmental impacts while operating as good neighbors,” said Jeff Jaros, president and CEO of NTH Consultants.
Utility leaders also pushed back on concerns about rising electric bills. Representatives from Consumers Energy and DTE Energy said large-scale users like data centers are required to pay for the infrastructure needed to serve them.
“Large load customers like data centers pay tariffs on the infrastructure needed to serve them,” said Lauren Snyder, Consumers Energy’s senior vice president and chief customer and growth officer. “That’s how we can confidently say rates will come down.”
An independent analysis from Anderson Economic Group estimates data center construction could generate between $121 million and $5.5 billion in economic output in Michigan, depending on the size of the project.
“These are developers saying, ‘Can we deposit money in your state?’” said Tyler Thelen, chief operating officer of Anderson Economic Group. “The potential economic footprint is really substantial.”
Still, questions remain about how projects will affect specific communities. Some residents have called for stricter zoning rules or even moratoriums on development.
Coalition members say local governments already have tools to manage those concerns, including zoning ordinances, special use permits, and development agreements.
“Data centers can have a profoundly positive impact on a region,” said Randy Thelen, president and CEO of The Right Place. “But only if we address the concerns raised by the community.”
The coalition says it plans to serve as a resource for local leaders and residents as discussions continue across Michigan. You can read more about the coalition here:mifordatacenters.org
