Democratic gubernatorial candidate Jocelyn Benson is rolling out a plan to impose strict new safeguards on data centers in Michigan to address concerns over rising energy costs, environmental impacts, and transparency.
As artificial intelligence increases the demand for massive, energy-devouring facilities, many residents across the state are pushing back, saying the projects will harm communities and ratepayers.
Despite what’s at stake, critics say the state’s approval process is opaque and favors developers over residents.
Benson, the secretary of state and Democratic frontrunner for governor, first announced the plan to Metro Times. She said Michigan should only allow data centers under strict conditions that protect residents and the environment.
The centers must “improve and deliver prosperity, well-paying union jobs, and affordable, low energy costs for our residents,” Benson’s campaign said.
Her proposal would set enforceable conditions to avoid the kinds of problems that have prompted opposition to similar projects nationwide.
Those requirements include:
- Mandatory public hearings before any project is approved
- Full transparency and disclosure to prevent backroom deals
- Proof, before construction, that projects will not harm natural resources or increase energy costs
- A requirement that data centers — not ratepayers — cover the cost of increased energy demand
- Union labor agreements to ensure well-paying jobs
Benson said projects that fail to meet those standards would not be allowed to operate in Michigan.
The proposal comes as Michigan becomes a hotspot for data center development. Data centers are the backbone of the internet, housing servers, networking equipment, and other infrastructure. While they have existed for decades, their growth has increased exponentially to meet the energy demands of artificial intelligence and cloud computing.
Developers are pursuing data center projects in at least 10 Michigan communities, with as many as 16 sites across the state under consideration. Without safeguards in place, the projects could permanently alter rural areas, cause environmental damage, and raise energy costs, critics say.
The controversy has been especially intense in Washtenaw County, where a proposed $7 billion data center in Saline Township, which is backed by major tech companies, would consume as much electricity as nearly one million homes.
Residents and environmental groups have warned the project could destroy wetlands, strain the power grid, and increase costs for consumers.
Polling and public surveys have shown residents are increasingly skeptical of data centers, particularly over their heavy electricity and water use, with opposition cutting across political lines.
A December poll by Progress Michigan found a majority of Michiganders oppose data centers because of concerns over rising utility bills, environmental impacts, and a lack of transparency.
Benson’s plan is aimed at addressing those issues.
The backlash has turned data centers into a contentious issue for political campaigns. In the gubernatorial race, independent candidate Mike Duggan has called data centers “vital” for future jobs but is pushing for a uniform statewide standard with protections for water use and electricity costs.
The leading Republican candidate, U.S. Rep. John James, has emphasized local control over development decisions, but he has yet to make data centers a central issue in his campaign.
Benson’s announcement follows a misleading narrative, pushed by right-wing media sites, about her ties to the controversial data center project in Saline Township. The claims originated in an article by The Midwesterner, which focused on her husband, Ryan Friedrichs, a vice president at Related Digital, a company connected to data center development. The article pointed out that Related Digital sued Saline Township after trustees denied a rezoning request for the project.
Other right-wing outlets and social media accounts picked up on the story and made unproven claims that Friedrichs stood to profit from data center development and his relationship with Benson.
But the project is tied to Gov. Gretchen Whitmer’s administration, and Benson has no role in it as secretary of state.
Related Digital has repeatedly said that Friedrichs will make no money from the project and has recused himself from any state-related work, including the Saline township project.
“Mr. Friedrichs has never had any role in the financing of Related Digital’s project and makes no commission from it,” a company spokesperson said. “Any claims to the contrary are 100% false.”
In a statement to Metro Times, the spokesperson said Friedrichs is focused on policy efforts in other states. As an employee, he receives a standard salary and bonus and does not receive compensation tied to the data center development, she said.
“All of Ryan’s work pertains to projects in other states,” the spokesperson said.
Benson’s proposal is an attempt to strike a balance between attracting new jobs and protecting residents and communities from the potential costs and environmental impacts of large-scale data centers.
“Data centers and corporations that violate these guardrails will not be able to operate in Michigan,” Benson’s campaign said.
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