Michigan Proposal to Attract Data Centers Garners Criticism

Critics of a proposed Michigan state bill aimed at attracting energy-guzzling data centers to the state say it amounts to the state backtracking on its climate and decarbonization goals.

As Tom Perkins explains in The Guardian, the massive energy draw required by data centers would likely trigger an “offramp” clause in climate legislation passed last year that would allow fossil fuel-powered plants to continue operating. “That would put an end to Michigan’s climate legislation that requires 100% renewable energy by 2040, and dramatically increase electric rates for residential customers, critics say.” In addition to electricity, data centers also consume massive amounts of water, up to 5 million gallons daily for evaporative cooling systems that critics say could be replaced with more efficient methods.

“Michigan isn’t alone, as data centers are quickly emerging as a serious threat to the nation’s climate goals. Tech companies use them to store servers and networking equipment that process the world’s digital traffic, and artificial intelligence is driving a boom,” Perkins adds. While some cities and states are wooing the companies for economic development, other places are considering bans in highly walkable commercial areas such as Atlanta’s Beltline.