DATA CENTERS IN MICHIGAN
A fact-based roadmap for responsible development
Data centers are becoming essential infrastructure for Michigan’s increasingly digital economy, powering the technologies that Michiganders, employers and communities rely on every day. As demand grows, so do important questions about energy, water, land use and impacts.
The Michigan Chamber is working to move the conversation forward through independent research, coalition leadership and a commitment to responsible development that protects our communities while recognizing the economic opportunities.
Independent analysis by Public Sector Consultants, commissioned by the Michigan Chamber Foundation in partnership with the Detroit Regional Chamber.
"Michigan doesn't have to choose between economic opportunity and community protections. We can and must do both."
WHY DATA CENTERS MATTER
Every time someone accesses a medical record, checks a bank account, joins a virtual meeting or operates an advanced manufacturing system, digital infrastructure is working behind the scenes.
Data centers house the computing systems that make those services possible. As demand for cloud computing, artificial intelligence and other digital technologies grows, so does demand for the infrastructure supporting them.
For Michigan, that creates both opportunity and responsibility.
WHAT THE INDEPENDANT RESEARCH FOUND
01
The opportunity is real
Data center development can bring significant private investment, skilled construction and technology jobs, local tax revenue, infrastructure improvements and opportunities for additional technology and innovation investment.
02
02
Community concerns deserve facts and answers
Questions about energy demand, utility rates, water resources, land use, environmental stewardship and transparency are legitimate and should be addressed through meaningful engagement, clear information and continued oversight.
03
Existing safeguards provide a strong foundation and targeted improvements can help too
Michigan isn’t starting from scratch. Existing laws, regulations and oversight already provide important protections. Targeted policy improvements can build on that foundation while keeping Michigan competitive for investment.
THE QUESTIONS MICHIGAN IS ASKING
What is a data center?
A data center is a facility that houses computer servers, storage systems and networking equipment used to process, store and transmit digital information. Data centers support services ranging from cloud computing and online banking to healthcare systems, manufacturing technology and artificial intelligence.
Why are more data centers being proposed in Michigan?
Demand for computing capacity is growing rapidly as businesses, consumers and public institutions use more cloud-based services, artificial intelligence and other digital technologies. Michigan’s location, infrastructure, workforce and available development sites make it a potential location for new investment.
What about Michigan’s water?
Water use varies significantly based on facility design, cooling technology and water source. Michigan already regulates significant water withdrawals. PSC recommends additional safeguards, including low-water-use cooling technology for data centers relying directly on groundwater.
What about land use?
Where data centers are located matters. PSC recommends encouraging development on brownfields and previously developed industrial sites and improving site readiness to reduce pressure on farmland and open space.
Do data centers raise electric rates for Michigan residents?
Michigan’s regulated utility framework includes protections intended to ensure large new energy users pay the costs associated with serving them rather than shifting those costs to other customers. PSC recommends making those protections more consistent, transparent and durable.
What economic benefits can data centers bring to Michigan?
Potential benefits include construction and skilled-trades jobs, permanent employment, expanded local tax bases and infrastructure investment. PSC recommends tying economic incentives more closely to measurable economic and community benefits.
What about transparency?
Communities need enough information to evaluate proposed projects and their impacts. The PSC research recommends limiting the use and scope of nondisclosure agreements and strengthening opportunities for meaningful public engagement.
What is the Michigan Chamber’s position on data centers?
The Michigan Chamber supports responsible data center development that protects ratepayers and natural resources, addresses community concerns, promotes transparency and allows Michigan to compete for investment and innovation. We believe Michigan does not have to choose between economic opportunity and community protections.
Does the Chamber support every proposed data center?
Responsible development isn’t about approving every project. Each proposal should be evaluated based on its location, infrastructure needs, environmental impacts, economic benefits and compliance with applicable requirements. The goal is to ensure Michigan can attract investment while protecting the interests of communities.
FROM RESEARCH TO ACTION: A POLICY ROADMAP
PSC’s analysis doesn’t recommend blanket approvals or blanket restrictions. Instead, it identifies targeted ways Michigan can build on existing protections.
Protect Ratepayers
Codify and increase transparency around safeguards designed to ensure large energy users bear the costs associated with serving them.
Protect Water + Land
Strengthen groundwater safeguards, encourage low-water-use technologies and prioritize brownfields and previously developed sites.
Improve Transparency
Limit unnecessary nondisclosure agreements and expand access to project information and meaningful community engagement.
Maximize Michigan Benefits
Better align incentives with measurable economic outcomes, community benefits, workforce opportunities and broader technology investment.
RESOURCES + LATEST UPDATES
Independent PSC Report
Read the complete analysis and recommendations.
- Report at a Glance
Key findings and recommendations in an easy-to-use summary.
- Watch: Data Center Town Hall
Independent experts answer questions about energy, water, economic development and community impacts.
- Listen: Michigan’s Data Center Future
Hear directly from the PSC researchers behind the report.
- Latest Data Center News + Policy Updates
Follow developments affecting responsible data center development in Michigan.
KEEPING MICHIGAN'S DATA CENTER CONVERSATION MOVING FORWARD
Michigan has an opportunity to help shape how digital infrastructure develops with strong safeguards, informed citizens, transparent decision-making and meaningful engagement among communities, policymakers and employers.
The Michigan Chamber and Michigan Chamber Foundation will continue working with policymakers, coalition partners and stakeholders to advance practical recommendations and help Michigan responsibly compete for the digital infrastructure powering today’s and tomorrow’s economy.