(LANSING) - Opposition is growing across Michigan as communities move to slow or block large-scale data center developments, with at least 19 cities and townships approving or considering temporary bans on new projects.
According to reporting by Bridge Michigan, local officials say the moratoriums are intended to give communities time to set rules governing where data centers can be built and how much land, water, energy, and infrastructure they can consume. Some proposed facilities would cover hundreds of acres and require electricity comparable to that used by a small city.
Supporters argue data centers bring long-term investment and increased tax revenue. Critics counter that the projects threaten farmland, strain water and power supplies, raise utility costs, and offer relatively few local jobs.
The backlash follows state tax incentives approved in late 2024 that exempt qualifying data centers from sales and use taxes through at least 2050. In response, bipartisan lawmakers have introduced legislation to repeal those incentives and establish statewide limits on water and energy usage.
Gov. Gretchen Whitmer and House Speaker Matt Hall have both said they oppose a statewide moratorium, favoring local control instead.
Several developers have already withdrawn proposals after encountering local resistance. Industry groups warn that prolonged approval delays could push companies to invest elsewhere.
With Michigan set to elect a new governor later this year, data center development has emerged as a key campaign issue, leaving the future of the industry's expansion in the state uncertain.