Benefits, drawbacks to data centers in Michigan communities, study finds
A new study by the Citizens Research Council of Michigan examined the impacts of data centers on Michigan communities, finding they can provide significant local tax revenue but create fewer long-term jobs than expected. The report also detailed considerations for electricity, water usage, and noise pollution, aiming to provide better information for local decision-making. The study highlighted the Stargate Center in Saline Township as an example of significant local revenue.
The Citizens Research Council of Michigan has released a new study detailing the benefits and drawbacks of data center developments for communities across Michigan. President Eric Lupher stated the 110-year-old organization aims to provide better information for local decision-making regarding these projects, which have become a 'hot issue' with often divisive debates.
Research Associate Eric Dennis highlighted key economic findings, noting that while data centers can be a 'game changer' for local governments due to increased property tax revenue, they typically create few long-term jobs after initial construction. For instance, Saline Township is projected to receive two-thirds of its revenue from the Stargate Center, which occupies only one percent of its land area.
The study also addressed environmental and utility concerns. Regarding electricity, Dennis clarified that residents are usually not on the same grid as hyperscale data centers and that increased demand from these facilities has historically led to more stable electricity prices. On water use, the report noted potential consumption of up to 5 million gallons per day, but emphasized that different cooling designs (e.g., non-evaporative closed-loop) consume very little water, though wastewater would need management.
Noise pollution was identified as a significant risk, particularly the lower-frequency sounds emitted by data centers, which may not violate existing local noise ordinances. The study suggests communities may need to update their regulations to address this. The 93-page report is intended to provide comprehensive guidance for communities to make informed decisions about individual data center projects.