Mike Duggan’s Plan to Address Large Data Center Siting in Michigan
Michigan currently has the most chaotic large data center siting process in America.
Dozens of proposals are now pending all across Michigan, many with limited transparency. If done badly, these projects can overload the existing electrical grids, threaten the local water resources, and drive up utility bills.
At the same time, Michigan needs the orderly development of large data centers in order to build a competitive economy for the State of Michigan. They are the essential backbone of the tech companies of the future and the failure to create a safe and open siting process will accelerate the departure of young people from Michigan leaving Michigan to seek the jobs of the future in other states.
That’s why Mike Duggan will issue an Executive Order on his first day in office that establishes a statewide set of standards for large data center siting and guarantees that no local community will be bullied into accepting a large data center it does not want.
Four Requirements for Eligibility for Large Data Center Consideration in Michigan
Anytime a developer proposes a data center in Michigan, it will have to meet four standards in order to be considered by a local community:
1. Zero Power-Cost Impact on Residents
Large data center developers will be required to pay 100 percent of the cost of the required power infrastructure and related costs. An ironclad agreement must be signed that guarantees the ratepayers in the community bear no cost of the project.
2. Mandatory Cooling Systems to Shield Michigan Water Resources
Michigan’s water resources will be protected and water usage limited. A closed-loop system that circulates refrigerated water in sealed pipes or an equally environmentally safe cooling method will be contractually required.
3. Guarantee Full Public Access to Development Contracts
All agreements will be shared transparently with the public – hidden provisions redacted from the public will be prohibited.
4. Legal Support for Local Control Over Development
The local community’s approval will be required. Local communities will not be bullied. In the event the developer sues a local community for refusing to site a data center, the State of Michigan will provide the local community the resources to defend that lawsuit.
Anytime a site is proposed, the State will immediately make available legal resources and expertise if the community requests the assistance. The State will act to provide the local community the resources to level the playing field in its negotiation with the developer.
The orderly development of the large data center resources needed to support Michigan’s tech economy will occur only when all developers are advised upfront of the standardized requirements across Michigan and the State’s commitment to back each community’s right to make its own decision on that community’s future.
