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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.
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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.”
