This article originally appeared in The Detroit News September 25, 2025.
Data centers are facilities that house computing and telecommunications infrastructure. They have been around for a long time, but demand is skyrocketing thanks to the rise of internet, cryptocurrency, artificial intelligence and cloud data storage. More data centers are being built around the country.
Michigan is trying to bring more into the state. And while we shouldn’t use taxpayer incentives to try and attract data centers, we should welcome them because they are important for current and future industry. These are the backbone of modern industry.
But opposition is mounting. Environmental groups are leading the charge to prevent data centers because they use a lot of water and a lot of energy. New centers can use around a million gallons of water per day, and state energy companies are projecting data centers alone to use one to four new gigawatts of power per year soon. In light of this, environmental groups are using lobbying, lawsuits and zoning to stop data centers from opening.
This sounds like a lot of water and a lot of electricity. But context is important. Michigan golf courses use 34 million gallons of water per day for irrigation. We have access to 20% of the world’s fresh water, with six quadrillion gallons in the Great Lakes. And the water used by data centers doesn’t just disappear — nowadays, it is used (and often re-used), treated and discharged.
Data centers do indeed use a lot of energy. But so do a lot of other companies. Hemlock Semiconductor uses 400 megawatts of electricity during full production and is the number one user of energy in Michigan. But it would not make sense for Michigan to shut the company down.
Using a lot of power is not a problem as long as companies are paying market price for it and energy companies are developing enough to meet consumer demand. Michigan energy companies are well aware that data centers are going to require more electricity and have plans in place for that.
So what’s the problem? Well, lawmakers are making things very difficult. State law requires reliable energy sources to be shut down and forces Michigan to turn toward unreliable wind and solar. Grid operators are sounding the alarm, but utilities and lawmakers don’t seem to be listening. Environmental groups act like energy is a fixed sum, but the reality is the opposite and more reliable and affordable energy is a must for our economy.
These policy choices mean businesses and citizens are fighting over a smaller pie. Environmental groups who try to stop new industry are acknowledging this — using electricity for new businesses means less for citizens. But that’s not how things should work. Michigan needs to revisit the punishing and unrealistic global warming goals that are pushing the state into an energy crisis. Lawmakers should make it easy for new businesses to come to Michigan and for the market to work when it comes to water and electricity usage.
But the state of Michigan isn’t doing that. And data centers are caught in the middle.
