As voters sour on data centers, governor candidates embrace moratorium
Both Democratic and Republican gubernatorial candidates in Michigan are proposing a moratorium on new data center construction, reflecting growing voter opposition to these energy- and water-intensive facilities. This shift in political stance comes as a recent poll shows 62% of likely Michigan voters oppose data center developments. The candidates aim to address concerns over environmental impact, electricity costs, and local control.
Michigan gubernatorial candidates Jocelyn Benson (D) and John James (R) are both advocating for a moratorium on new data center construction across the state. This stance marks a significant shift from current Governor Gretchen Whitmer's support for such developments and appears to reflect growing public apprehension, with a recent poll indicating 62% of Michigan voters oppose new data center projects.
Democratic nominee Benson, Michigan's Secretary of State, has called for a ban on tax breaks for data centers and mandates that they openly negotiate with communities while paying for their energy and water usage. Republican nominee U.S. Rep. James proposes a halt until plans are in place to protect residents, focusing on environmental safeguards and preventing electricity bill increases. Both candidates have faced past scrutiny regarding their initial stances and connections to data center projects, including Benson's husband's previous involvement with a development by The Related Cos. and James receiving campaign contributions from industry leaders.
Governor Whitmer, who has championed data centers as an economic boon and approved tax incentives for their development, has notably supported the controversial OpenAI hyperscale data center in Saline Township. Despite her advocacy, she has also urged companies to voluntarily commit to environmental protections and called for legislative actions like termination fees for energy contracts. Abby Clark of the Natural Resources Defense Council expressed bipartisan appreciation for addressing data centers but questioned the duration and specifics of any proposed moratorium, emphasizing the need for comprehensive statewide regulation.
The debate unfolds against a backdrop of local communities instituting their own data center moratoriums, though a statewide pause would be a rare move, similar to New York's recent action. Michigan's current zoning laws often complicate local efforts to block data centers if industrial uses are already permitted. While the Michigan Senate has seen bills introduced to codify payment rules and require community benefit agreements, these measures, along with Benson's calls for stricter guardrails, have not yet advanced. Critics, like Michigan Chamber CEO Jim Holcomb, warn that a blanket ban could hinder the state's economic competitiveness and deter vital investments in digital infrastructure, particularly with increasing demand driven by AI.