LANSING, Mich. — Data center facilities have been appearing across Michigan, with operations already running in Grand Rapids and Ann Arbor, and at least 2 facilities in Lansing. As local communities grapple with potential new data centers in mid-Michigan, the driving forces behind this expansion stem from both federal and state policy initiatives.
- Federal and state policies, including Trump's 2025 executive order and Michigan tax breaks, are driving data center expansion across the state.
- Local communities are drafting ordinances to regulate data centers since they cannot legally ban them due to property rights.
- Data centers support AI and cloud computing but consume large amounts of water and electricity, creating mixed community reactions.
Data centers are giant distribution centers for electronic information that support cloud computing and artificial intelligence. However, they also consume large amounts of water and electricity, leading to mixed reactions from residents.
WATCH BELOW: Where does the push for data centers come from and why?
"I hope it's a really short-lived thing, I hope everyone wakes up and goes we don't want this," one neighbor said.
"It's so important that we make sure Michigan is safe," another resident commented.
According to IBM, data centers date back to the early 1940s, though they've grown significantly since the internet boom in the 1990s. The current surge is driven by increased demand for cloud computing and artificial intelligence capabilities.
President Trump signed an executive order in June 2025 accelerating data center infrastructure development.
"Whether we like it or not, we're suddenly engaged in a fast-paced competition to build and define this groundbreaking technology that will determine so much about the future of civilization itself," Trump said.
This federal push created momentum at the state level, making data center development a bipartisan issue. Governor Gretchen Whitmer first signed legislation supporting data centers in January of last year. Months later, bipartisan legislation took effect offering tax breaks on data center equipment, making Michigan an attractive location for companies to build.
Michigan Attorney General Dana Nessel has opposed some of these initiatives.
"Let's cross all our T's and dot all our I's and make sure this is a good deal for Michiganders," Nessel said.
Data centers are not new to mid-Michigan. At least 2 facilities are currently operating in the Lansing area, run by the company Liquid Web.
The federal and state policy push explains why communities are seeing more data center proposals across their neighborhoods. This has prompted local cities to draft ordinances giving them more control over what data centers could look like if proposed in their area.
"We cannot outlaw data centers. It's just not allowed. It's a violation of people's property rights to say hey you can't do this here," one local city official explained.
Mason City Council is scheduled to make their final decision Monday evening on a controversial ordinance that would allow for data centers in the city.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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