Bridge Listens: The facts about Michigan’s environment, data centers, dams

Environmental issues, including the impact of data centers, are a top concern for Michigan voters heading into the 2026 election, according to Bridge Michigan's informal survey. The state's environmental challenges range from Great Lakes health to aging dams, with significant political disagreement on how to address them.

Michigan became one of 38 states to offer tax breaks for hyperscale data centers last year, aiming to attract the booming industry. These incentives allow qualifying data centers to avoid the state's 6% sales and use tax, a benefit valued by the Senate Fiscal Agency at $90 million through 2050, though actual savings for operators could be much higher. One 1.4-gigawatt project planned south of Ann Arbor has already secured power approvals.

However, these tax breaks and data center developments have sparked bipartisan backlash. Critics raise concerns about the substantial land, water, and energy demands of these facilities, as well as the societal disruption potentially caused by artificial intelligence, as noted by Erik Nordman of Michigan State University's Institute of Public Utilities. Data centers often rely on increased fossil fuel burning, contributing to global warming, and some cooling methods can consume millions of gallons of water daily.

In response to these concerns, dozens of Michigan communities have enacted moratoriums on data center development, and some state lawmakers are advocating for a statewide pause. Despite this, both Governor Gretchen Whitmer and State House Speaker Matt Hall have voiced opposition to the proposed statewide moratorium effort.