Survey: Michigan local leaders sour on data centers, want more regulations
A survey of Michigan local government officials indicates widespread skepticism towards large-scale data centers, with a majority wanting tighter statewide regulations due to concerns over environmental harm and utility costs. Many local governments have proposed or enacted temporary halts, and state lawmakers are now considering new proposals, tax-break rollbacks, and potential moratoriums in response to growing backlash. Both gubernatorial and senatorial candidates have also called for moratoriums.
A recent survey by the University of Michigan’s Center for Local, State, and Urban Policy reveals that less than 1 in 5 Michigan local government officials believe large-scale data centers offer benefits outweighing their costs, with skepticism highest among rural leaders where such projects are typically sited. The survey of 1,328 jurisdictions across the state indicates that 60% of local leaders prioritize stricter state and local regulations for hyperscale data centers, citing concerns over environmental harm and increased utility costs.
This sentiment reflects a growing backlash against data centers, which were initially promoted as economic boons. At least 18 Michigan localities have already voted on or proposed temporary construction halts. Both gubernatorial candidates, Republican John James and Democrat Jocelyn Benson, along with Senate candidates Abdul El-Sayed and Mike Rogers, have called for moratoriums on new data center development, aligning with a recent poll showing nearly two-thirds of Michigan residents oppose their construction.
Despite lawmakers having approved sales and use tax exemptions for large data centers two years prior to attract the industry, the escalating public and local government opposition has prompted bipartisan discussions in Lansing for new regulatory proposals, potential tax-break rollbacks, and moratoriums. Rep. Joey Andrews, who previously authored the tax break bill, acknowledged the local backlash but stressed the importance of not rejecting growth for the state. Local officials reportedly feel pressured by both resident opposition and the prospect of costly legal battles with wealthy developers.