AT THE CAPITOL | MI lawmakers seek local government perspective on data centers

Michigan state lawmakers on the House Oversight Subcommittee on Corporate Subsidies and State Investments held a hearing to gather local government perspectives on data center development, which has become a contentious issue across the state. Committee Chair Steve Carra (R-Three Rivers) noted the importance of hearing from local communities regarding environmental impacts, energy consumption, and the rise of AI-driven technology. Dan Wells, Community Development Director for Gaines Charter Township, testified that public comments received by the township regarding data centers have been "overwhelmingly against." Gaines Charter Township is currently considering a rezoning request from Microsoft for a new data center, and the township already hosts a data center campus by Switch, which provides substantial property tax revenue. State Rep. Jamie Greene (R-Richmond) highlighted the benefits some communities receive from data centers, like the $150,000 in property taxes Switch provides to Gaines Charter Township. However, State Rep. Dylan Wegela (D-Garden City), who has proposed a state-level pause on new data center projects, emphasized that constituents want a moratorium and regulations. Wells indicated that local officials prefer to make their own decisions regarding data center projects rather than being subjected to a state moratorium. The proposed Microsoft development in Gaines Charter Township includes conditions for water-efficient design and noise limits of 65 decibels at residential property lines. Wells noted that the conditional rezone is a legal contract, and the township could sue for damages if conditions are violated. A public hearing on the rezoning request was scheduled for Wednesday evening at South Christian High School Auditorium in Caledonia.