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Opinion | With the right guardrails, we should consider embracing data centers
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Michigan’s economy has always been built on manufacturing. But with our population essentially flat since 1980, we’re also becoming an older state with a shrinking workforce. The American Enterprise Institute ranks Michigan 41st in available labor.
That’s why automation matters.
Rochester Hills, along with neighboring Auburn Hills, manufactures more industrial robots than any city in North America. Artificial intelligence will provide the brains that make those robots even more capable, helping Michigan factories, and America, stay competitive for decades to come.
Instead of delaying approval of the data centers that power AI, Michigan must embrace the opportunity to lead another transformational industry, just as we did with the assembly line more than a century ago.
We simply need some commonsense guardrails.
LAND USE
Michigan has no shortage of former industrial properties in communities like Detroit, Flint, Saginaw, Lansing and Bay City. These former powerhouses already have existing roads and utility services. Here’s a perfect opportunity for the state to consider reimbursement grants for site readiness development and put these abandoned factories back on the tax rolls.
Rule #1: Whenever possible, prioritize former industrial sites for new data centers. Redeveloping these properties puts abandoned land back to work, strengthens local tax bases, and benefits the surrounding community.
WATER USE
We’ve all heard the “millions of gallons” a day use of water for data center cooling. Data centers use a lot of water. That’s a fact. Michigan also has one of the world’s greatest freshwater resources. We can support economic growth while protecting it.
Rule #2: Data centers should return municipal water to the same watershed whenever practical, and facilities using groundwater should rely on closed-loop systems that recycle water instead of continually drawing from underground aquifers.
For example, the Great Lakes Water Authority pumps water out of Lake Huron, and the wastewater treatment plant empties it into the Detroit River. That’s where Lake Huron water was headed in the first place. If a data center is pulling water from wells / underground aquifers, they must use a closed loop recirculation system to ensure the same water is used again (and again).
Michigan’s cooler climate is actually an advantage, reducing the amount of cooling needed compared to many other states.
Perspective also matters. In Michigan, we love our golf courses. Collectively, these acres of fairways and greens consume over 2.4 billion (with a “b”) gallons of water every year. The 32-mile Chicago Sanitary and Ship Canal has drawn 2 billion (with a “b”) gallons out of Lake Michigan every day since 1900. The question isn’t whether we use water. It’s whether we use it responsibly.
ELECTRICITY
Data centers require enormous amounts of electricity. Who is going to pay for all the new production?
Rule #3: Don’t allow data centers to connect to the electrical grid. Period. Instead, data centers must provide their own power through behind-the-meter generation. Data centers could subcontract the production of electricity to local utilities that already have that expertise. Just keep them off our grid. That way, there’s no question of who is paying for the surge in electricity demand.
NOISE
This one is straightforward. If we follow Rule #1, then rule #4 will be easy.
Rule #4: If data centers are located on existing industrial property, they must follow the same local noise standards that already apply to every other industrial facility. If they are built elsewhere, existing local ordinances should govern. Michigan is a manufacturing state. Noise pollution is not a new issue.
NATURAL GAS STORAGE
Michigan has the nation’s largest underground natural gas storage capacity, along with abundant water, a cool climate and decades of manufacturing expertise.
Rule #5: Data centers using clean natural gas for on-site generation should take advantage of Michigan’s existing storage infrastructure whenever practical.
LIGHT POLLUTION
Data centers operate around the clock. So did many of Michigan’s manufacturing plants during our industrial peak. Communities already know how to regulate lighting and industrial development through local zoning.
Data centers are not scary. They are just another form of manufacturing that has been the economic heartbeat of Michigan since Ford’s assembly line in 1913. We can wisely put this transformative technology to work here in Michigan. We’ve flourished with innovation before and we can do it again.
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