Attorney General Dana Nessel has raised alarms over the potential economic fallout from rapid data center development in Michigan, cautioning that unchecked expansion could trigger severe financial strain across the state. Speaking at a demonstration held at the Michigan Capitol, she emphasized that utility pricing transparency remains a critical concern, displaying a heavily redacted contract to illustrate the lack of public disclosure.
Nessel warned that electricity costs could rise to unsustainable levels, threatening both household affordability and business viability.
She urged the Michigan Public Service Commission to avoid expediting DTE Energy’s proposal to supply 1.4 gigawatts of power to a large-scale data center in Saline Township, near Ann Arbor. Instead of fast-tracking approval, she advocated for a contested case process, allowing for thorough review through public testimony and evidence submission.
While clarifying she does not seek to block the project outright, her stance resonated with grassroots opposition. One protester voiced stronger opposition, shouting disagreement with her moderate position.
The commission is scheduled to convene on Thursday, with utility representatives noting that developers may abandon the initiative if power agreements aren’t finalized by Friday.
Republican gubernatorial candidate Anthony Hudson attended the event, acknowledging rare bipartisan alignment with Nessel despite their differing party affiliations. He encouraged her to pursue broader regulatory measures targeting data infrastructure.
Demonstrators represented communities across Michigan where similar developments are under consideration, including Lansing, Grand Rapids, Howell, and Saline. Signs highlighted local concerns, reflecting a growing statewide movement.
Mitch Distin, a rally organizer, cited cross-party collaboration in Kalkaska—where a comparable project was withdrawn—as proof that collective action can yield results. He stressed that while local efforts matter, coordinated state-level engagement is essential.
Lawmakers from both major parties participated, signaling unusual political unity. Republican Jim DeSana of Carleton is collaborating with Democrats Dylan Wegela of Garden City and Erin Byrnes of Dearborn to eliminate a recently enacted sales tax exemption for data center equipment.
DeSana warned that no region is immune, noting that even areas currently unaffected may soon face proposals, underscoring the urgency of proactive policymaking.
— news from WKAR
— News Original —
Nessel warns data centers could cause ‘economic catastrophe’ in Michigan
Attorney General Dana Nessel is warning data centers could cause an “economic catastrophe” in Michigan as several communities consider proposals.
Nessel said during a protest at the Michigan Capitol on Tuesday that data center developers are not being transparent about the effect such projects would have on utility rates, holding up a poster featuring pages of one such contract with redacted pages, section headings and signatories.
“We could have our own recession just in Michigan,” Nessel said. “Because it will be impossible for businesses to pay utilities that are going to be so high, and impossible for our state residents to live here because they won’t be able to pay for their electricity.”
Nessel is continuing to call for the Michigan Public Service Commission to not fast-track DTE Energy’s plan to provide power for a massive data center project proposed in Saline Township, near Ann Arbor. The facility would require 1.4 gigawatts of power.
She said the commission should instead consider the proposal through a contested case, requiring members to consider evidence and testimony from a variety of sources.
“They just want us to accept their word, DTE’s word, that this is not going to impact our rates,” Nessel said.
Nessel said she is not asking the commission to completely derail the project, which led one protester at the Tuesday rally to shout out “yes, we are.”
The commission will meet Thursday. Utility officials say developers could terminate the project if power is not secured by Friday.
Republican gubernatorial candidate Anthony Hudson was in attendance at the rally and said it may be the first time he agrees with Nessel, who is a Democrat, though he called on her to take additional action on data centers.
During the protest, attendees held signs representing various communities where data centers are being considered, including Howell, Saline, Lansing and Grand Rapids.
“People from different demographic areas can come together, stand on the same sidewalk, listen to the same speakers, stand side by side, talk and be mature,” Hudson said.
Mitch Distin helped organize the rally. He said he got involved after seeing Democrats and Republicans working together to push back against a data center proposal in Kalkaska. That project was eventually scrapped.
“Community-wide action will give us community-wide solutions, but statewide action will give us statewide solutions,” Distin said. “So, that’s why we realized that it’s really important to take this to Lansing and to let our legislators know that nobody, on the left or the right, supports these things.”
Tuesday’s rally featured state lawmakers from both sides of the aisle.
Republican Rep. Jim DeSana of Carleton is working with Garden City Democratic Rep. Dylan Wegela and Dearborn Democratic Rep. Erin Byrnes to repeal a sales tax exemption for data center equipment that was signed into law last year.
“Everybody in the state of Michigan, these could come to your area,” DeSana said. “You think you’re safe today because you don’t have a data center next to you, just wait. They’re coming.”