Whitmer data center proposal echoes legislative Democrat plans
Governor Gretchen Whitmer unveiled a new plan to regulate data centers in Michigan, involving new policies for utility resource use and a company pledge for environmental policies and local benefits. The plan aims to address concerns from residents and environmental groups regarding data centers' energy and water consumption and echoes legislative efforts for statewide safeguards. While Oracle supports the plan, some lawmakers and environmental groups criticize it as too weak, advocating for stronger regulations or a statewide moratorium.
Governor Gretchen Whitmer introduced a comprehensive plan to regulate data centers in Michigan, consisting of new policies and a mandatory pledge for companies. The policy component focuses on utility resource consumption, stipulating minimum payments, contract terms, early termination fees, and credit/collateral requirements for data center operators. The accompanying pledge, outlined with ten points, emphasizes adherence to state environmental policies, increased clean energy generation, and community benefits, aiming to ensure residents are not burdened by development costs.
The governor's proposal aligns with similar plans put forth by Michigan Senate and House Democrats, as well as existing Michigan Public Service Commission policies for large-scale data centers. State Representative John Fitzgerald (D-Wyoming) highlighted public demand for safeguards on water, land, and air amid concerns about resource-intensive hyperscale data centers. Environmental groups, like the Sierra Club Michigan, voiced criticism, with legislative and policy director Tim Minotas arguing the pledge is insufficient and calling for a statewide moratorium on new data center approvals, a sentiment supported by both political parties.
Despite local municipalities, including Lansing, enacting moratoriums, a broader statewide pause remains unlikely as legislative leaders favor a regulatory approach. Tech company Oracle, currently developing a data center in Saline Township, endorsed the governor's plan. However, State Senator Mallory McMorrow (D-Royal Oak) expressed reservations, stating that "pledges are not guaranteed protections" and advocating for stronger legislative measures. Lawmakers are expected to deliberate on the data center issue after their summer recess.