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LANSING, Mich. (FOX 2) - Governor Gretchen Whitmer announced a proposal on Wednesday that is aimed to ensure data centers in Michigan pay the full cost of their construction and operations without increasing costs for Michigan residents.
This announcement comes after major pushback on data centers from communities across the state.
Big picture view:
According to Governor Whitmer, the Michigan Affordable and Responsible Growth Action Plan has two components, codify existing Michigan Public Service Commission protections into state law and encouraging data center companies to voluntarily commit to responsible development and consumer protections.
Codifying protections include requiring:
- Minimum billing demand
- Long-term utility contracts
- Contract termination fees
- Credit and collateral requirements
- Other measures ensuring data centers cover the full costs they place on the electric grid.
"I’m calling on all data center companies to sign the pledge, and on the Michigan legislature to codify every single one of our guardrails in Michigan law," Gov. Whitmer said. "Let’s keep working together to grow our economy responsibly and build a Michigan where every family can afford to thrive."
AI companies signing the pledge would agree to pay all energy and grid upgrade costs associated with their facilities. The governor says households and small businesses would not subsidize any data centers.
Governor Whitmer says other agreements include:
- Preventing costs from shifting to other ratepayers.
- Comply with Michigan environmental regulations protecting air, water, wetlands and natural resources.
- Minimize water use through closed-loop cooling systems and pay for any necessary water infrastructure.
- Prioritize hiring Michigan workers and generate local tax revenue.
- Promote transparency by reporting environmental compliance and community investments.
- Ensure developments benefit local communities without raising taxes or utility bills.
Dig deeper:
Meanwhile, Governor Whitmer says Michigan already has safeguards in place. Lawmakers say state laws prevent customers from paying higher energy rates because of large industrial users.
Rules from the Michigan Public Service Commission say data centers are required to sign long-term contracts, provide financial guarantees, pay exit fees and reduce power usage during grid emergencies.
Current laws also say data centers require environmental oversight through the Michigan Department of Environment, Great Lakes, and Energy. Plus they must comply with the state's 2023 100% clean energy standard.
The other side:
The Vice President of Oracle, Michael Egbert, responded to the pledge saying,
"Oracle is grateful for Governor Whitmer's leadership in attracting transformative investment to Michigan while protecting residents, ratepayers, and the state's natural resources. We support the Governor's commitment to ensuring data center companies pay their own way, and are building responsibly to meet every commitment in the pledge, including not increasing utility bills or compromising grid reliability. In fact, our partnership with DTE is projected to deliver a net benefit of approximately $300 million annually to Michigan electricity consumers while also creating thousands of construction jobs and permanent roles, billions of dollars in long-term tax revenue, and new opportunities for Michigan businesses. We are equally committed to protecting Michigan's water resources by using a closed-loop cooling system that dramatically reduces water use and supports sustainable operations."
Local perspective:
Data centers have been a topic of discussion as the 2026 midterm election continues to heat up. FOX 2 asked the primary candidates for Michigan governor about their views on data centers.
On the ground, communities are continuing to raise their voice against data centers in the state.
In June, the Allen Park Planning Commission officially rejected the proposal for a data center. Officials say the developer failed to provide key answers after months of heated debate.
However, the fight continues for other communities in Metro Detroit, including one at Oakland University.
The Source: FOX 2 used information from Governor Gretchen Whitmer and previous reporting.