The good news: Michigan already has strong rules and incentives surrounding data center energy use and water consumption.
Michigan – A new statewide survey of 600 Michigan voters reinforces that residents have reasonable questions about the impacts of data center development, but strong regulations can ease their concerns.
The poll conducted by the Glengariff Group on behalf of the Detroit Regional Chamber of Commerce found that a plurality of Michigan voters would be willing to consider a data center locating within 25 miles of their home if there are regulations that minimize their impacts.
The survey identified three regulations that voters consider essential to responsible data center development:
- More than 85% said it was important that data centers bear the full cost of electricity and grid upgrades, with no rate increases passed on to residential or business customers.
- More than 85% also said that government officials should not give additional tax incentives to attract data centers or be allowed to sign nondisclosure agreements that shield project details from the public.
- And more than 80% called for mandatory closed-loop water recycling systems that minimize ongoing water consumption.
When voters were asked at the beginning of the survey if they would support data centers locating within 25 miles of their communities, a majority say “no.” However, when voters were asked to consider proposed regulations, plurality shifted to saying they would be willing to consider a data center by a margin of 48.7%-41.3%.
Michigan for Responsible Data Centers coalition members note that many of the protections voters want to see are already happening, whether through state regulations or industry advancements.
“Modern data centers are increasingly being built with closed-loop cooling systems that – similar to a car radiator – minimize the need for additional water for cooling once the system has been filled,” said Michigan for Responsible Data Centers coalition member Jeff Jaros, CEO of environmental engineering firm NTH Consultants. “Of course, state regulations and incentives can always get better, but the industry is increasingly moving in that direction, and the state has robust water monitoring and permitting programs in place that all businesses must follow.”
Jaros also cites bipartisan legislation that positioned Michigan as having one of the most stringent data center incentive programs in the country. To qualify for a sales tax exemption, data center operators must use 90% green energy, cannot draw water from a private well, and must obtain a green building certification to demonstrate energy efficiency.
In addition, Michigan Public Service Commission regulations require data centers to pay in full for their energy infrastructure and do not allow them to shift their energy costs to other customers.
More information on existing state energy and water regulations can be found here.
