The debate over the impact of data centers in Michigan has taken center stage as Attorney General Dana Nessel voices her concerns about potential economic repercussions. Amidst growing community discussions, Nessel warns that these developments could lead to significant hikes in utility rates, potentially destabilizing the state’s economy.
Addressing a protest at the Michigan Capitol, Nessel criticized the lack of transparency from data center developers regarding the financial implications on utility rates. She highlighted this issue by displaying a heavily redacted contract from a data center proposal, emphasizing the need for clearer communication with the public.
“We could have our own recession just in Michigan,” Nessel stated. “Because it will be impossible for businesses to pay utilities that are going to be so high, and impossible for our state residents to live here because they won’t be able to pay for their electricity.”
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WKAR-MSU
Nessel is urging the Michigan Public Service Commission not to expedite DTE Energy’s proposal to power a large-scale data center near Ann Arbor, which would demand 1.4 gigawatts of electricity. She advocates for a more thorough review process involving diverse testimonies and evidence.
“They just want us to accept their word, DTE’s word, that this is not going to impact our rates,” Nessel asserted.
Although Nessel clarified she isn’t asking to halt the project entirely, a protester interjected, expressing a desire to stop it. The commission is scheduled to convene on Thursday, with utility officials indicating the project’s fate rests on securing power by Friday.
Anthony Hudson, a Republican gubernatorial candidate, attended the rally, marking a rare moment of agreement with Nessel, a Democrat. Hudson urged Nessel to further address the data center issue.
“People from different demographic areas can come together, stand on the same sidewalk, listen to the same speakers, stand side by side, talk and be mature,” Hudson commented.
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WKAR-MSU
Mitch Distin, a rally organizer, emphasized bipartisan cooperation against the data center proposal, referencing a similar effort that led to the cancellation of a project in Kalkaska.
“Community-wide action will give us community-wide solutions, but statewide action will give us statewide solutions,” Distin noted. “So, that’s why we realized that it’s really important to take this to Lansing and to let our legislators know that nobody, on the left or the right, supports these things.”
Andrew Roth / WKAR-MSU
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WKAR-MSU
The rally united state legislators from both political parties. Republican Representative Jim DeSana, alongside Democratic Representatives Dylan Wegela and Erin Byrnes, is pushing to repeal a sales tax exemption for data center equipment introduced last year.
“Everybody in the state of Michigan, these could come to your area,” DeSana cautioned. “You think you’re safe today because you don’t have a data center next to you, just wait. They’re coming.”
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