Michigan gubernatorial candidates pitch solutions to data center unrest
Published in News & Features
EAST LANSING, Mich. — Some of the candidates for governor of Michigan acknowledged Thursday that the prospect of data centers in the Great Lakes state has been problematic over the last several months, but differed on how to address some of the concerns associated with them.
The five candidates, speaking at a gubernatorial forum at the Michigan Press Association's annual convention, recommended addressing the issue through local moratoriums, by identifying areas of the state that might be open to the facilities and, generally, through more transparency and community input around the projects.
Others took the opportunity to target Secretary of State Jocelyn Benson, a Democratic nominee for governor who did not participate in the forum and whose husband works for a company associated with the Saline Township data center project.
"We have to ask, though, a couple of questions of Benson and that is, we have to take a look at the data centers and what's happening with the husband," said Perry Johnson, a Bloomfield Hills businessman and Republican running for governor.
Ryan Friedrichs, Benson's husband, works for Related Cos., a subsidiary of which, Related Digital, is partnering with Oracle AI, on OpenAI Stargate, a data center in Saline Township.
Benson’s team, in a statement after the forum, said her husband has recused himself from all work within Michigan and said she believes “any data centers built in Michigan need to do right by Michiganders.”
Johnson was joined on stage at the Kellogg Hotel and Conference Center in East Lansing by Republican former Attorney General Mike Cox, Senate Republican Leader Aric Nesbitt, and longtime pastor Ralph Rebandt.
Genesee County Sheriff Chris Swanson, Benson's Democratic primary opponent, also participated in the forum.
Benson, Republican U.S. Rep. John James, and former Detroit Mayor Mike Duggan, an independent, did not attend. Former House Speaker Tom Leonard dropped his bid for governor earlier in the day, hours before the candidate forum.
The candidate forum was moderated by Detroit News reporter Craig Mauger.
Cox, when asked how to address the data center boom, encouraged communities that did not want the facilities to enact a moratorium to stop them. But he also noted there may be communities that want them, as evidenced by the dozens of smaller data centers already in the state.
"I would encourage every single community to exercise local control," Cox said. "...Let locals decide."
Johnson suggested the state put in place a variety of programs to regulate the facilities, including a prohibition on energy cost increases that exceed inflation.
"We have to have a way of regulating this and making sure that it makes sense and we're not doing that," Johnson said.
Michigan already has some guardrails related to data centers and energy costs. Under a data center sales and use tax exemption signed into Michigan law in 2024, the energy costs of a data center cannot bleed over into residential electric rates in order to qualify for the tax break.
Nesbitt argued the state "should be open for business, not for sale." He said the government should not subsidize data centers and suggested moving them to industrial zones rather than farms and forest land.
Nesbitt also suggested that any data center project should be paired with lower energy rates for residential users and lower property taxes for residents.
Swanson, who has publicly criticized a law passed by Democrats that would take away local control over solar and wind farms, also criticized Thursday the lack of additional opportunities for public comment before the Michigan Public Service Commission on data center developments.
One of the chief problems with the data centers in Michigan, he said, is the way they've been rolled out.
"When you shove it down people’s throat and they don’t have the ability to go to their local commission and have their voice heard, that’s a problem," Swanson said. "When public service commissioners shut down public comment, that's a problem."
No industry should be shut down, Swanson said, noting, as an example, that though he's "never smoked weed," he's supportive of the cannabis industry.
When it comes to data centers, he said, the state should be divided into tiers of openness to such developments and proceed accordingly.
Rebandt, a longtime pastor from Farmington Hills who now lives in Otsego County, said he has concerns about data centers' effects on the environment, water, and noise pollution, not to mention the lack of community involvement in decision-making.
"I'm not against technology; I would still be riding my pony if I was," Rebandt said. "But the reality is we have to make sure we're careful for the next generation, to protect the environment for them, to protect their future."
In response to other questions, all candidates at the forum said they would voluntarily subject themselves to public records requests, a promise Democratic Gov. Gretchen Whitmer also made on the campaign trail but has not kept.
"Right now, as you all know, the governor could be giving you all the information you’re asking for," Cox said. "Any state senator or state representative could be doing the same thing, voluntarily.”
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