Biz leaders push data centers, warning Michigan may miss ‘golden ticket’
Michigan business leaders are urging the state to embrace data center development, highlighting economic benefits while acknowledging public opposition. State officials and candidates are facing backlash over concerns about land, water, and energy use, despite tax incentives already in place. The debate includes calls for more regulations and transparency amid ongoing zoning processes and local moratoriums.
Michigan business leaders, including John Rakolta of Walbridge construction company and Garrick Rochow, president and CEO of Consumers Energy, are advocating for the state to aggressively pursue data center development. Speaking at the Mackinac Policy Conference, they warned that Michigan risks losing a "golden ticket" of investment and jobs if it doesn't overcome local opposition and streamline processes. Rakolta highlighted Walbridge's ongoing $7 billion data center project in Saline Township, a partnership between OpenAI and Oracle, while Rochow mentioned working with two large hyperscalers currently in the zoning process.
This push faces significant political and public backlash across Michigan. Hyperscale data centers have been proposed in 11 counties, including Google's planned 282-acre facility in Van Buren Township, Wayne County. Concerns center on land, water, and energy demands, as well as the tax breaks offered to wealthy companies. US Rep. John James and State Sen. Mallory McMorrow expressed reservations, with McMorrow calling for more "guardrails" to protect air and water. Some Michigan communities have already adopted data center moratoriums.
A recent poll sponsored by the Detroit Regional Chamber indicated widespread skepticism among Michiganders, with only a third supporting a data center within 25 miles of their home and three-quarters favoring stricter regulations, such as developers paying for infrastructure upgrades and minimizing water use. Despite bipartisan misgivings about the current approach, Governor Gretchen Whitmer and some lawmakers have supported tax incentives for data centers. Former Energy Secretary Jennifer Granholm, now a consultant in the industry, suggested community benefit agreements as a way to foster better local partnerships.