Michigan is racing toward the data center boom that powers artificial intelligence and cloud computing. Lawmakers have approved generous tax breaks, and utilities are courting multi-billion-dollar projects, including a proposed $7 billion “hyperscale” campus in rural Saline Township, backed by tech giants OpenAI and Oracle. 

Supporters promise investment and new tax revenue. But critics warn that these vast, windowless buildings could come with higher electric bills, heavy demands on local water supplies, and pressure to keep fossil fuel plants running long past Michigan’s clean energy deadlines. 

So who really pays for Michigan’s data-center gold rush, and who gets to decide?

Brian Allnutt, a senior reporter and contributing editor at Planet Detroit, has been following Michigan’s data center deals from the state capitol to township board meetings and courtroom settlements. He joined Robyn Vincent to help make sense of the choices Michigan faces.

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As the temperature has climbed this summer, so have energy bills—and frustrations. These higher costs are driven by more than extreme summer temperatures. Factors like outdated power grids and a recent $217 million rate hike approved for DTE Energy by state regulators earlier this year are also at play.

Meanwhile, federal clean-energy incentives that once encouraged investment in renewable energy are starting to phase out. Michigan was on track to increase its renewable energy capacity by 2035. But with key federal tax credits repealed by the Trump administration, the state faces higher future costs and delayed renewable projects.

At the same time, utility shutoffs in Michigan and nationwide have increased, hitting lower-income and marginalized communities hard. 

Nicholas Schroeck, dean of the University of Detroit Mercy School of Law, and an expert in environmental law and justice, joined The Metro’s Robyn Vincent to discuss energy affordability and sustainability and what residents can do about it.

Editor’s Note: DTE Energy and Consumers Energy are financial supporters of WDET.

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Listen to The Metro weekdays from 10 a.m. to noon ET on 101.9 FM and streaming on demand.

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