Survey: Michigan local leaders sour on data centers, want more regulations

September 22, 2026

A University of Michigan survey of 1,328 jurisdictions reveals that fewer than 20% of Michigan local government officials believe large-scale data centers provide benefits that justify their costs, with most wanting stricter state regulations. The skepticism is most pronounced in rural communities, where only 12% see positive value compared to 40% in urban areas, despite rural regions being primary targets for these facilities due to cheaper land availability. This represents a significant reversal from two years ago when Michigan lawmakers approved tax exemptions to attract data centers, viewing them as economic opportunities.

Who is affected

Local government officials across Michigan's 1,328 jurisdictions
Rural Michigan communities (where data centers are typically built)
Urban area officials and residents
Michigan residents broadly (nearly two-thirds oppose data center construction)
Data center developers
Gubernatorial candidates (Republican John James and Democrat Jocelyn Benson)
Senate candidates (Democrat Abdul El-Sayed and Republican Mike Rogers)
Michigan state lawmakers in Lansing

What action is being taken

At least 18 local governments have voted on or proposed temporary halts to new data centers
Michigan lawmakers are considering multiple bipartisan proposals, tax-break rollbacks, and potential moratoriums
The University of Michigan's Center for Local, State, and Urban Policy conducted and released a survey of local jurisdictions
Both gubernatorial and senate candidates are calling for moratoriums on data centers

Why it matters

This represents a significant policy reversal with major economic and political implications for Michigan. Despite tax incentives approved just two years ago to attract data centers as economic development tools, widespread public opposition has emerged, particularly in rural communities that bear disproportionate costs while urban areas potentially reap benefits. The issue has become a defining topic in midterm elections, with nearly two-thirds of residents opposing data centers and over 16% identifying it as a top concern. Local officials face pressure from both angry constituents demanding action and well-funded developers threatening legal battles, creating difficult governance challenges. The debate reflects broader tensions about growth, development priorities, and the fair distribution of costs and benefits across different types of communities.

What's next

Lawmakers are considering a flurry of new bipartisan proposals, tax-break rollbacks, and potential moratoriums
Election outcomes will determine which gubernatorial and senate candidates (all of whom support moratoriums) take office
Local governments may face expensive and protracted legal battles with data center developers
Post-election policy decisions will reveal whether campaign promises about moratoriums translate into actual legislative action

Read full article from source: bridgedetroit.com