Rural Michigan leaders push back against data center boom as election looms
A new University of Michigan survey reveals that less than 20% of Michigan local officials believe data centers are worth their costs, with rural leaders being the most skeptical. This sentiment is fueling a bipartisan push for tighter statewide regulations and moratoriums on new data center developments across the state. The issue has become a significant talking point in upcoming midterm elections, reversing a prior trend of offering tax incentives to attract the industry.
A recent survey by the University of Michigan's Center for Local, State, and Urban Policy indicates that fewer than one in five Michigan local government officials believe large-scale data centers offer benefits that outweigh their costs, with rural leaders expressing the highest skepticism (12% agreement) compared to urban officials (40%). This widespread sentiment reflects a growing backlash against what were once hailed as economic boons, leading at least 18 local governments across Michigan to vote on or propose temporary halts to new data center construction.
Data centers have emerged as a significant bipartisan issue in Michigan's midterm elections. Both gubernatorial candidates, Republican John James and Democrat Jocelyn Benson, along with Senate candidates Abdul El-Sayed (Democrat) and Mike Rogers (Republican), have called for moratoriums on new data center developments. This political shift comes despite lawmakers in Lansing having narrowly approved sales and use tax exemptions for large data centers two years prior to attract the industry. Lawmakers are now considering new bipartisan proposals, including tax-break rollbacks and potential moratoriums.
Rep. Joey Andrews, D-St. Joseph, who previously authored the tax break bill, acknowledges the souring local sentiment, comparing it to the backlash against battery plants and wind energy projects. He warns that rejecting growth is unhealthy for the state. Stephanie Leiser, director of the U-M center, notes that local officials feel caught between vocal resident opposition and the daunting prospect of expensive legal battles with well-funded data center developers. U.S. Rep. Debbie Dingell has also called for a pause on the University of Michigan's planned $1.25 billion computing facility in Ypsilanti Township.