Report: communities should be realistic about data centers
A new report from the Citizens Research Council of Michigan advises local governments to be realistic about data center economic impacts, emphasizing that they are not traditional job creators. The report also suggests Michigan is well-equipped to handle data center demands, particularly concerning water and electricity, with the restart of the Palisades Nuclear Power Plant. Local communities are encouraged to negotiate strong benefit agreements despite potential 'Not in my backyard' opposition.
The Citizens Research Council of Michigan has issued a new evaluation advising Michigan cities to maintain a realistic outlook on the economic benefits of proposed AI data centers. Research associate Eric Paul Dennis highlighted that while these facilities attract billions in investment, they are not effective as traditional job creation strategies, and each proposal should be assessed individually.
Dennis noted that Michigan is uniquely positioned to meet the demands of data centers, citing the state's overall water usage trends and the imminent restart of the Palisades Nuclear Power Plant. He reassured that the state's water resources are generally not stressed in the same way as other regions, and any new data center requiring significant water withdrawals would undergo strict review by state environmental regulators.
The council's report also suggests that despite potential 'Not in my backyard' opposition from local residents, data center projects can offer substantial tax revenue for municipalities, provided local leaders secure strong benefit agreements from developers upfront.