What's the Deal with Data Centers?

Over the past few years, families across Michigan have been dealing with rising electric bills and more frequent power outages after storms. People want to know a simple thing: will the lights stay on, and can they afford their energy bills?

At the same time, there is a rush to approve massive new data centers tied to AI and cloud computing. Supporters say these projects mean construction jobs, tech investment, and another “innovation” headline for the state.

But when you look closely at the long-term impacts on our electric grid, our water, and our communities, the picture is much less reassuring.

That’s why I believe Michigan should pause approvals for new large data centers until we have honest answers to some basic questions about cost, reliability, water use, and community impact. We should not be signing decades-long deals while many residents are still sitting in the dark after storms and watching their utility bills climb.

What Concerns Me About the Current Data-Center Push

Data centers are among the most energy-intensive buildings on the grid. A single facility can use as much electricity as a small city and operate around the clock. That demand can push utilities to build new power plants and transmission infrastructure.

Those costs don’t disappear. If regulators are not careful, they ultimately show up in the electric bills paid by families and small businesses.

Water use is another concern. Many large data centers rely on cooling systems that can consume significant amounts of water once evaporation and discharge are accounted for. Communities can also face long-term noise, traffic, and visual impacts, even though the permanent workforce at many facilities is relatively small.

At the same time, the state has been offering generous tax exemptions and special power agreements to attract these projects. That means we may be giving up public revenue and taking on infrastructure risks while hoping the benefits eventually reach ordinary residents.

Standing with Workers, Not Just Projects

I want to be clear about something: I support unions, and I respect that many building-trades unions see data centers as an opportunity. These projects can create well-paid construction jobs and apprenticeship opportunities, and that matters for working families.

But we also have to be honest about what happens after the ribbon-cutting. Construction jobs are temporary by design. Once the building is complete, the permanent workforce is often relatively small while the community continues to live with the facility’s long-term energy and infrastructure demands.

Michigan can support union labor in ways that build lasting careers while strengthening our communities. Investments in clean energy, grid modernization, efficiency upgrades in schools and hospitals, and public infrastructure can create union jobs that last for decades while improving reliability and lowering long-term costs.

What I’m Calling For

Before approving more massive facilities, Michigan should:

• Pause approvals for new large data centers while we study their full impacts on energy bills, reliability, water use, and climate.

• Stop offering massive tax giveaways to Big Tech companies. If a project truly benefits a community, it should not require decades-long tax holidays.

• Require full transparency in agreements between utilities, corporations, and government officials. Residents deserve to see the deals being made in their name.

• Put ratepayers and grid reliability first by strengthening oversight of utilities and major infrastructure agreements.

• Ensure that any approved facilities are built and maintained by union workers, with fair wages, strong safety standards, and apprenticeship opportunities.

  
  

This is not about being anti-technology. Technology should serve people—not drive up our bills, strain our infrastructure, or lock communities into deals they never had a real chance to evaluate.

Share Your Story

If you’ve experienced repeated power outages, rising energy bills, or local projects that felt like they were decided before the public had a voice, I want to hear from you.

info@rhondayates.com

Michigan can take a smarter path—one that protects our communities, supports strong union jobs, and ensures our energy system remains reliable and affordable for everyone.

—Rhonda