nbsp;DTE nbsp;Why the Rush?” slogans aimed at both the developers and DTE Energy for asking regulators to fast‑track a 1.4‑gigawatt power contract. Marine Corps veteran Kathryn Haushalter told the crowd that she moved to the area to raise her children in the country and now fears the data center will take their water, clean air and dark skies; she vowed, “There is no way I’m going to take this laying down”\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://www.eenews.net/articles/a-sleeping-giant-in-michigan-politics-data-centers/\"\u003e[13]\u003c/a\u003e. Saline organizer Tim Bruneau accused DTE of rushing to lock in contracts while shutting out the public and said locals are “up against the governor” and corporate giants\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://www.eenews.net/articles/a-sleeping-giant-in-michigan-politics-data-centers/\"\u003e[14]\u003c/a\u003e.\u003c/p\u003e\u003ch3\u003eOther Michigan communities push back\u003c/h3\u003e\u003cp\u003eSaline is not an isolated case. Augusta Township residents have launched a ballot drive to force a public vote on a $1 billion data‑center rezoning, and Ypsilanti Township and other Washtenaw County communities have mounted campaigns against data centers, citing environmental impacts and loss of local control. Howell Township trustees withdrew a rezoning application tied to a Meta‑backed project and placed a \u003cstrong\u003esix‑month moratorium\u003c/strong\u003e on new data‑center applications after residents objected; the developer sought to turn about \u003cstrong\u003e1 000 acres\u003c/strong\u003e of farmland into an AI campus, but backlash forced the pause\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://www.wilx.com/2025/12/08/re-zoning-application-howell-twp-data-center-withdrawn/\"\u003e[12]\u003c/a\u003e.\u003c/p\u003e\u003cp\u003eAcross Michigan, utilities have already announced plans to connect \u003cstrong\u003e6.4 gigawatts\u003c/strong\u003e of data‑center load. DTE has signed deals for \u003cstrong\u003e1.4 GW\u003c/strong\u003e and is negotiating another 3 GW, while Consumers Energy is pursuing about 2 GW across three facilities. Ratepayer advocates note that this is roughly equivalent to adding the power requirements of several midsize cities to the grid within a few years, raising concerns that costs could be shifted to residential customers without adequate protections\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://mitechnews.com/update/michigans-data-center-boom-meets-backlash-as-massive-tech-projects-drive-energy-and-community-debates/\"\u003e[8]\u003c/a\u003e.\u003c/p\u003e\u003ch2\u003eWhy Data Centers Threaten Electricity Rates\u003c/h2\u003e\u003ch3\u003eUnprecedented demand on the grid\u003c/h3\u003e\u003cp\u003eClustered data centers can overwhelm regional grids. Virginia’s Loudoun County home to the world’s largest concentration of data centers commissioned a study warning that unconstrained demand would boost the state’s electricity usage by \u003cstrong\u003e183 % by 2040\u003c/strong\u003e (compared with 15 % growth without new centers) and would require massive investments in power plants, substations and distribution lines. Georgia lawmakers have proposed legislation to bar regulators from raising rates because of data centers, citing six rate hikes in two years and noting that centers create few long‑term jobs. In the Midwest, consumer advocates warn that utilities typically spread the capital cost of new power plants across all customers, meaning households help foot the bill for hyperscale facilities.\u003c/p\u003e\u003ch3\u003eProjected rate increases\u003c/h3\u003e\u003cp\u003eResearch suggests the costs could be significant. The PJM regional power market, covering states from Illinois to North Carolina, reported a \u003cstrong\u003e$9.3 billion\u003c/strong\u003e increase in its 2025–26 capacity market attributable largely to data‑center demand, which is expected to raise average monthly bills by about \u003cstrong\u003e$18 in Maryland\u003c/strong\u003e and \u003cstrong\u003e$16 in Ohio\u003c/strong\u003e. A Carnegie Mellon University study estimates that data centers and cryptocurrency mining could raise average U.S. electricity bills \u003cstrong\u003e8 % by 2030\u003c/strong\u003e, with increases exceeding \u003cstrong\u003e25 %\u003c/strong\u003e in high‑demand markets such as northern Virginia. In Michigan, energy consultant Douglas Jester warns that a single \u003cstrong\u003e1‑gigawatt\u003c/strong\u003e data center could force residential rates up by \u003cstrong\u003e5–10 %\u003c/strong\u003e unless safeguards are adopted.\u003c/p\u003e\u003cp\u003eDTE’s first hyperscale agreement illustrates the stakes. In October 2025 the utility signed a 1.4‑GW power contract with an unnamed data‑center operator, increasing DTE’s total electric load by about \u003cstrong\u003e25 %\u003c/strong\u003e. Utility Dive reports that DTE has a five‑year, $30 billion investment pipeline and could serve up to \u003cstrong\u003e8.4 GW\u003c/strong\u003e of data‑center load, requiring 12 GW of new generation between 2026 and 2032\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://www.utilitydive.com/news/dte-data-center-deal-transformational-growth-earnings/804231/\"\u003e[9]\u003c/a\u003e. Ratepayer advocates fear that if AI demand fails to materialize, billions spent on new generation and transmission could become \u003cem\u003estranded assets\u003c/em\u003e, leaving households to pay for unused capacity.\u003c/p\u003e\u003ch3\u003eTax breaks and job shortfalls\u003c/h3\u003e\u003cp\u003eMichigan’s 2024 tax incentive program reflects the political trade‑offs. Public Acts 181 and 207 create sales‑ and use‑tax exemptions for enterprise data centers, eliminating the state’s 6 % tax on eligible construction and equipment. To qualify, a facility must invest at least $250 million and create \u003cstrong\u003e30 qualified new jobs\u003c/strong\u003e paying at least 150 % of the regional median wage; those jobs must be maintained through 2050 (2065 for brownfield sites). The law prohibits utilities from charging a rate that forces residential customers to subsidize infrastructure required to service the facility, and data centers cannot receive local property‑tax benefits unless a local government approves it\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://www.michiganbusiness.org/services/data-center/\"\u003e[11]\u003c/a\u003e.\u003c/p\u003e\u003cp\u003eDespite these protections, critics point to past experience. In 2015 the Nevada‑based data‑center operator Switch promised to create \u003cstrong\u003e1 000 jobs\u003c/strong\u003e and invest $5 billion in Michigan in exchange for tax breaks. By 2022, the company had created just \u003cstrong\u003e26 jobs\u003c/strong\u003e; rather than revoke the incentive, Michigan officials retooled the deal, allowing Switch to continue saving about \u003cstrong\u003e$1 million per year\u003c/strong\u003e in tax breaks\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://bridgemi.com/michigan-environment-watch/data-centers-create-few-jobs-michigan-wants-give-them-big-tax-breaks/\"\u003e[10]\u003c/a\u003e. Critics worry that the new program could repeat that pattern.\u003c/p\u003e\u003ch2\u003eWater Worries in the Great Lakes Basin\u003c/h2\u003e\u003cp\u003eData centers aren’t just energy hogs they are water‑hungry, too. A mid‑sized facility uses about \u003cstrong\u003e300 000 gallons of water per day\u003c/strong\u003e, while a hyperscale center may consume \u003cstrong\u003e1–5 million gallons per day\u003c/strong\u003e. A single facility withdrawing 365 million gallons annually (1 MGD) uses as much water as roughly \u003cstrong\u003e12 000 Americans\u003c/strong\u003e do in a year\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://greatlakes.org/2025/03/data-centers-are-increasing-in-the-great-lakes-at-what-cost/#:~:text=hyperscale%20data%20centers%20can%20use%20between%201%20and%205%20million%20gallons\"\u003e[7]\u003c/a\u003e. Most water used in evaporative cooling is consumed it does not return to the watershed. U.S. data centers directly consumed \u003cstrong\u003e17.4 billion gallons of water in 2023\u003c/strong\u003e, and researchers expect that figure to double by 2028. Only \u003cstrong\u003e1 %\u003c/strong\u003e of Great Lakes water is renewed each year through precipitation and inflow, underscoring the need for careful management\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://greatlakes.org/2025/03/data-centers-are-increasing-in-the-great-lakes-at-what-cost/#:~:text=17.4%20billion%20gallons%20of%20water%20in%202023\"\u003e[7]\u003c/a\u003e.\u003c/p\u003e\u003cp\u003eIn Michigan’s Great Lakes basin, about \u003cstrong\u003eone quarter of all U.S. data centers\u003c/strong\u003e are already located, and multiple new projects are proposed. Environmental advocates warn that communities across Michigan, Wisconsin and Indiana are already facing groundwater strain. In Benton Harbor, one of Michigan’s poorest cities, officials are pursuing a $3 billion data‑center project on 280 acres even as the city’s water system runs a $2.5 million annual deficit. Reverend Edward Pinkney of the Benton Harbor Community Water Council describes the proposal as a “monster” that would destroy farmland and waste energy, warning that traffic, environmental and security issues could outweigh the benefits of a few dozen jobs.\u003c/p\u003e\u003ch2\u003eBig AI Companies and the Power Play\u003c/h2\u003e\u003ch3\u003eNuclear deals and off‑ramp loopholes\u003c/h3\u003e\u003cp\u003eTo guarantee around‑the‑clock power, tech giants are turning to nuclear energy. Microsoft partnered with Constellation to reopen Pennsylvania’s Three Mile Island and agreed to buy power from the restart of Michigan’s Palisades plant. Google is working with Westinghouse to develop AP1000 small modular reactors; Meta signed a 1.1‑GW nuclear purchase agreement; and Amazon invested $500 million in nuclear startups. These deals allow data centers to claim “carbon‑free” energy while sidestepping state renewable mandates. Meanwhile, Michigan’s clean‑energy law includes an off‑ramp allowing utilities to build new gas or coal plants if renewable generation cannot meet data‑center demand, ensuring steady power but potentially locking in fossil‑fuel infrastructure.\u003c/p\u003e\u003ch3\u003eLobbying and quiet capture of policy\u003c/h3\u003e\u003cp\u003eLobbying fuels much of the expansion. DTE Energy and Switch Inc. spent more than $2 million lobbying Michigan lawmakers and regulators to raise electric rates and secure favorable terms. In many small townships, officials lack the expertise to model air pollution from diesel generators or assess the “city’s worth of power” that data centers consume. Developers often rush proposals to avoid organized opposition Bridgewater Township supervisor Laurie Fromhart said companies try to push projects through quickly so residents cannot mobilize. Nationally, Senator Bernie Sanders has called for a moratorium on new AI‑oriented data centers, arguing that claims of explosive electricity demand are exaggerated. Some states are exploring renewable‑energy requirements and dedicated rate classes to ensure data centers do not shift infrastructure costs onto households, while industry advocates counter that data centers are essential to digital infrastructure and that targeting them could chill investment.\u003c/p\u003e\u003ch2\u003eConclusion: A Choice About the Future\u003c/h2\u003e\u003cp\u003eData centers epitomize the paradox of artificial intelligence: they promise new efficiencies yet demand colossal resources. Across Michigan, they are being marketed as economic catalysts that will put the state on the AI map. But the evidence suggests a more complicated story. Facilities the size of small cities will draw gigawatts of power and millions of gallons of water; state incentives and corporate lobbying mask the true costs; and even conservative projections warn of significant rate hikes for ordinary households.\u003c/p\u003e\u003cp\u003eThe race to build AI infrastructure is not just about technology it is about who pays for and who benefits from the next industrial revolution. Communities in Saline, Augusta, Ypsilanti and Howell show that grassroots mobilization can challenge corporate narratives and force public debates about energy justice. With data centers already using more than 4 % of U.S. electricity and on track to more than double by 2030\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://www.energy.gov/articles/doe-releases-new-report-evaluating-increase-electricity-demand-data-centers\"\u003e[3]\u003c/a\u003e, the question is not whether the infrastructure will be built, but whether it will be governed in the public interest. The decisions made now on tax policy, rate structures, water regulation and renewable investment will determine whether the AI boom becomes a driver of equitable prosperity or another example of corporate profit at public expense.\u003c/p\u003e\u003ch2\u003eSources\u003c/h2\u003e\u003col\u003e\u003cli\u003e\u003cp\u003e\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://planetdetroit.org/2025/11/data-centers-water-energy-impact/#:~:text=Hyperscale%20(the%20giants)%3A\"\u003e[1]\u003c/a\u003e Planet Detroit explains that hyperscale data centers typically use between 100 and 1 000 MW of electricity—enough to power 80 000–800 000 homes.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003e\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://planetdetroit.org/2025/11/data-centers-water-energy-impact/#:~:text=deals%20for%206.4%20gigawatts%20of%20data%20center%20power\"\u003e[2]\u003c/a\u003e Planet Detroit reports that Michigan utilities announced deals for 6.4 GW of data‑center power in 2025; DTE signed 1.4 GW and is negotiating another 3 GW, while Consumers Energy pursues 2 GW. The article notes this is equivalent to adding six or seven midsize cities’ power demand to the grid.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003e\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://www.energy.gov/articles/doe-releases-new-report-evaluating-increase-electricity-demand-data-centers\"\u003e[3]\u003c/a\u003e A U.S. Department of Energy report finds that data centers consumed about 4.4 % of U.S. electricity in 2023 and could use 6.7–12 % by 2028; electricity use grew from 58 TWh in 2014 to 176 TWh in 2023 and may reach 325–580 TWh by 2028.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003e\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://planetdetroit.org/2025/11/data-centers-water-energy-impact/#:~:text=183%20TWh%20of%20electricity%20in%20 2024\"\u003e[4]\u003c/a\u003e Planet Detroit cites the International Energy Agency’s estimate that U.S. data centers used about 183 TWh of electricity in 2024—more than 4 % of national demand and comparable to Pakistan’s annual consumption.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003e\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://planetdetroit.org/2025/11/data-centers-water-energy-impact/#:~:text=Analysts%20project%20that%20electricity%20demand%20from%20data%20centers%20could%20grow\"\u003e[5]\u003c/a\u003e Analysts quoted by Planet Detroit project that electricity demand from data centers could grow roughly 133 % by 2030 and that a typical AI‑focused hyperscale facility consumes as much power each year as 100 000 households.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003e\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://planetdetroit.org/2025/11/data-centers-water-energy-impact/#:~:text=natural%20gas%20supplied%20more%20than%2040%25%20of%20the%20electricity%20used\"\u003e[6]\u003c/a\u003e Planet Detroit notes that in 2024 natural gas supplied over 40 % of the electricity used by U.S. data centers, while renewables provided about 24 %, nuclear 20 % and coal about 15 %.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003e\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://greatlakes.org/2025/03/data-centers-are-increasing-in-the-great-lakes-at-what-cost/#:~:text=hyperscale%20data%20centers%20can%20use%20between%201%20and%205%20million%20gallons\"\u003e[7]\u003c/a\u003e The Alliance for the Great Lakes explains that hyperscale data centers using evaporative cooling can consume 1–5 million gallons of water per day; using 365 million gallons per year (1 MGD) is equivalent to the annual water use of roughly 12 000 Americans. The report also notes that U.S. data centers consumed about 17.4 billion gallons of water in 2023 and that only 1 % of Great Lakes water is renewed each year.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003e\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://mitechnews.com/update/michigans-data-center-boom-meets-backlash-as-massive-tech-projects-drive-energy-and-community-debates/\"\u003e[8]\u003c/a\u003e MITechNews reports that Michigan utilities plan to connect 6.4 GW of data‑center load across the state; DTE signed a 1.4‑GW deal and Consumers Energy is pursuing 2 GW. The article warns this demand is equivalent to adding several midsize cities to the grid and notes that even closed‑loop systems can still use millions of gallons of water daily.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003e\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://www.utilitydive.com/news/dte-data-center-deal-transformational-growth-earnings/804231/\"\u003e[9]\u003c/a\u003e Utility Dive reports that DTE’s first hyperscale data‑center contract is a 1.4‑GW agreement that will increase the utility’s electric load by about 25 %. The company plans to invest $30 billion over five years and has a pipeline to potentially serve 8.4 GW of data‑center load, requiring about 12 GW of new generation between 2026 and 2032.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003e\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://bridgemi.com/michigan-environment-watch/data-centers-create-few-jobs-michigan-wants-give-them-big-tax-breaks/\"\u003e[10]\u003c/a\u003e Bridge Michigan recounts that Switch promised to create 1 000 jobs and invest $5 billion in 2015 but had produced only 26 jobs by 2022; Michigan retooled the deal so the company continued receiving about $1 million per year in tax breaks.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003e\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://www.michiganbusiness.org/services/data-center/\"\u003e[11]\u003c/a\u003e The Michigan Strategic Fund’s data‑center tax‑exemption guidelines require at least $250 million in investment and 30 new jobs paying 150 % of the regional median wage. Facilities cannot receive local property‑tax benefits without local approval and are barred from receiving rates that force residential customers to subsidize infrastructure; the jobs must be maintained through at least 2050.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003e\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://www.wilx.com/2025/12/08/re-zoning-application-howell-twp-data-center-withdrawn/\"\u003e[12]\u003c/a\u003e WILX reports that Howell Township trustees withdrew a rezoning application for a Meta‑linked data center and imposed a six‑month moratorium on data‑center applications after residents objected to a proposal to turn about 1 000 acres of farmland into an AI campus.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003e\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://www.eenews.net/articles/a-sleeping-giant-in-michigan-politics-data-centers/\"\u003e[13]\u003c/a\u003e E&E News describes a December 2025 protest in Saline where more than 100 residents chanted “No Secret Deals,” and Marine Corps veteran Kathryn Haushalter said the proposed 250‑acre data center would take her water, clean air and dark skies, vowing to fight.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003e\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"text-blue-600 hover:text-blue-800 underline\" href=\"https://www.eenews.net/articles/a-sleeping-giant-in-michigan-politics-data-centers/\"\u003e[14]\u003c/a\u003e The same E&E News article quotes Saline organizer Tim Bruneau accusing DTE of locking in contracts while shutting out the public and saying locals are “up against the governor.”\u003c/p\u003e\u003c/li\u003e\u003c/ol\u003e","authorId":2,"beatId":4,"status":"published","isFeatured":false,"featuredImageUrl":"/uploads/featured/featured-2-1767045322535.jpg","videoUrl":"","views":32,"isLive":false,"storyOrigin":"network","createdAt":"2025-12-29T22:00:07.987Z","updatedAt":"2025-12-29T22:00:07.987Z","publishedAt":"2025-12-29T22:00:07.987Z","author":{"id":2,"username":"reporter","email":"[email protected]","firstName":null,"lastName":null,"role":"reporter","isActive":true,"profileSlug":"reporter","createdAt":"2025-06-18T00:12:15.942Z","updatedAt":"2025-12-30T08:19:29.233Z"},"beat":{"id":4,"name":"Technology","slug":"technology","description":"Technology News","createdAt":"2025-12-22T20:01:41.823Z"}}