Study shows data centers bring risks and rewards

The Michigan Citizens Research Council has released a study detailing the benefits and liabilities of data centers, a topic generating significant local and media attention across Michigan. Many communities express opposition to the expansion of data center projects within their areas. The council, with over a century of experience in statewide issues, tasked researcher Eric Dennis with summarizing the debate.

Dennis acknowledged public concerns but suggested they are often "over exaggerated," generally concluding that the "pluses outweigh the minuses" for data centers as a concept, though specific sites might differ. Governor Whitmer and state lawmakers have previously approved tax breaks to attract these centers, aiming to create jobs. Dennis noted "a lot of activity around the construction phase" for hyperscale centers, estimating about 100 permanent onsite jobs per center, though this varies.

The study addresses key points of contention from opponents, including fears of increased utility bills and potential power shortages due to data centers' high energy consumption. Dennis's report indicates that local consumers are unlikely to face power shortages and that increased power demand tends to keep rates lower.

Environmental concerns, such as excessive water usage and localized noise pollution, were also examined. Dennis suggested high water usage is "not likely." However, the study points to indicators that localized "global warming" could increase by a few degrees near these facilities, potentially changing a 90-degree day into a 95-degree day in the immediate vicinity. This analysis is expected to fuel the ongoing debate.