Whitmer asks data center companies to pledge that Michiganders won’t pay for their power
Michigan Governor Gretchen Whitmer has called on data center companies to sign a voluntary pledge ensuring Michigan households do not absorb electricity and water costs, and urged lawmakers to codify regulatory safeguards. This initiative responds to public concern and legislative proposals for moratoriums amidst increasing data center development in the state.
Michigan Governor Gretchen Whitmer has urged data center companies operating in the state to sign a voluntary pledge. This pledge would commit them to cover the full electricity and water costs of their facilities, acquire new power resources, protect local water supplies, and prioritize hiring Michigan residents. The Governor is also pushing state lawmakers to codify these regulatory safeguards into law, aiming to protect Michigan households from bearing the financial burden of data center development and operations.
This initiative comes amidst growing controversy surrounding data center expansion in Michigan and across the United States. Governor Whitmer has faced criticism from within her own party for her support of such projects, particularly following her appearance at the groundbreaking of a $16 billion Saline Township data center campus developed by Related Digital for Oracle and OpenAI. Critics, including U.S. Rep. Rashida Tlaib and State Rep. Dylan Wegela, have expressed disappointment, with Wegela proposing a moratorium on new data centers and accusing the governor of "selling out" to tech companies. Republican lawmakers, including State Sen. Jim Runestad and Jennifer Wortz, have also introduced bills for year-long moratoriums and spoke at a "People Over Data Centers" rally.
Despite calls for a pause, Governor Whitmer has rejected the idea of signing a moratorium, arguing that data centers will be built regardless and Michigan can lead in responsible development. She supports legislative efforts to formalize stricter terms, referencing an eight-bill package from Senate Democrats aimed at regulating water use, energy, and labor practices. However, questions remain regarding the transparency and applicability of the Saline project's terms as a model, particularly concerning its projected 1.4 gigawatts of power demand.
While Michigan has previously approved tax breaks for large data centers and the Michigan Public Service Commission has imposed conditions, the governor's new plan seeks further commitments. Competing legislative measures, ranging from regulatory packages to moratorium proposals, are currently in play but none have yet reached the Governor’s desk for approval.