Data Centers in Michigan: Smart Growth or Risky Gamble?
By Chelsea Lynn Wooton
As Michigan towns like Mason, Lansing, and beyond face an influx of hyperscale data centers, the conversation often boils down to jobs and investment—but the real questions involve resources, infrastructure, and community control. These facilities promise economic benefits, yet they demand massive amounts of water, electricity, and land, often with minimal local employment. Without oversight, the costs fall on residents, not corporations. 1. Understanding the Scale Data centers are energy-intensive industrial facilities. To put this in perspective: One planned Southfield data center will draw 100 megawatts of electricity—roughly the consumption of 70,000 homes—while creating only 35 permanent jobs (bit.ly/4aD4XKj). Cooling alone can require millions of gallons of water per day, putting pressure on aquifers and local water infrastructure. Construction traffic, continuous 24/7 operations, and backup generators strain roads, power grids, and air quality. National and regional examples—like New Carlisle, IN, and facilities in Maryland and Oregon—show that rapid expansion without safeguards can stress local resources and create long-term costs for communities. 2. Community Health & Environmental Risk Lead and water infrastructure: Many Michigan towns have aging lead pipes. High-volume withdrawals can accelerate lead leaching. Baseline testing before approval is essential. Air quality: Backup diesel generators emit nitrogen oxides (NOx) and particulate matter. Long-term exposure is linked to respiratory issues. Ecosystem impacts: Large water draws affect wetlands, lakes, and downstream communities. The key principle: study first, approve later. Communities need enforceable safeguards before operations begin, not after residents face the consequences. 3. Economic and Infrastructure Realities While data centers bring tax incentives and occasional temporary construction jobs, permanent local employment is minimal. Infrastructure costs—water, sewer, electricity—often fall to residents. Tax exemptions can erode public revenue, even as utilities must upgrade grids. It’s not anti-growth to ask: Do the long-term costs outweigh the benefits? Without concrete oversight, the answer can easily be “yes.”
- Tough Questions Every Community Should Ask When attending public meetings or reviewing proposals, consider: Cumulative Energy Impact: Who ensures multiple data centers won’t overload the grid or raise rates? Infrastructure Costs & Risk: How will water, sewer, and power upgrades be funded? Will residents bear the financial or safety risk? Baseline Environmental & Health Studies: Are water, air, and soil assessments required before approval? How will ongoing monitoring be enforced? Answering these questions helps communities weigh the trade-offs responsibly, rather than simply reacting to hype or fear.
- A Proposal for Responsible Development Michigan residents aren’t opposed to technology—they want smart, enforceable safeguards: Independent studies: Environmental, water, and energy impact analyses conducted prior to approval. Water & lead safety: Baseline testing and continuous monitoring for municipal and private wells. Clear limits: Water, wastewater, energy, and emissions must have enforceable restrictions. Public transparency: Communities must have access to operational data. Alternative designs: Low-water cooling, energy efficiency, and mitigation technologies. Phased approvals: Stepwise expansion with community oversight at each stage. These demands are practical, enforceable, and ethically sound, ensuring that development benefits towns without draining their resources.
- Moving Forward Communities can shape development without rejecting progress outright. By asking informed questions, demanding enforceable safeguards, and leveraging public oversight, residents can turn potential risks into a model for responsible, sustainable growth. Ignoring these responsibilities invites irreversible consequences—overloaded grids, stressed water systems, and minimal local benefit. Michigan deserves better than a repeat of past mistakes in Saline or elsewhere.
- Take Action Attend city council meetings and webinars (e.g., MSU IPPSR forums, local public hearings). Submit public comments to city clerks and planning departments. Share research, credible sources, and case studies with neighbors and coalitions. Communities that plan thoughtfully win twice: protecting their infrastructure and resources while welcoming innovation responsibly.
Sources & References Southfield Data Center – 100 MW, 35 jobs MSU IPPSR Public Policy Forums: https://ippsr.msu.edu/public-policy-forums New Carlisle, IN Water Impact Case Study Maryland & Oregon Data Center Environmental & Health Reports Mason M-3 Technology Innovation Zoning Ordinance & FAQ
