January 17th, 2025

Governor Gretchen Whitmer approved sales and use tax exemptions for data centers, as part of  Michigan’s push to attract and retain tech industry investment. The policy eliminates certain taxes on data center equipment purchases, aiming to incentivize their development within the state.

Michigan LCV strongly opposed this legislation, citing the enormous energy and water demands of data centers, along with the significant challenge they pose to meeting Michigan’s clean energy goals. We are seeing in states around the country increased energy demand from data centers resulting in significant rate hikes for customers and the build out of new fossil fuel energy facilities. Additionally, data centers require massive amounts of water for cooling, and without proper oversight, large-scale withdrawals could strain local water supplies. 

By failing to include safeguards such as water conservation requirements, renewable energy commitments, or protections against cost shifts to consumers, Governor Whitmer has prioritized corporate tax breaks over responsible environmental policy. Michigan LCV continues to advocate for policies that hold corporations accountable for their environmental impact, rather than allowing unchecked industry expansion at the expense of Michigan residents.