Michigan Gov. Gretchen Whitmer on Wednesday called on data center developers angling to build in the Great Lakes state to sign a pledge vowing that residents won’t pay for energy or water.
So far, a moratorium isn’t on the table.
The Democratic governor unveiled the Michigan Affordability and Responsible Growth Pledge, a package of 10 commitments to ensure companies pay the full cost of construction, operation, power and water tied to new projects built to support the growth of artificial intelligence.
“On my watch, Michiganders have been protected from any rate increases due to data center development and we adopted some of the strongest protections for people and communities, but we need to do more,” Whitmer said in a news release. She urged developers to sign the pledge, while saying the state legislature should pass laws to cement its principles.
Democratic New York Gov. Kathy Hochul took a more aggressive approach Tuesday, signing a moratorium for up to one year on new data center construction across the state.
The Michigan governor’s pledge more closely resembles the nonbinding pledge adopted by the White House in March and expanded Tuesday, which some Republican governors signed and a host of utilities are expected to also adopt.
The competing approaches come as tensions rise across the country over data center development, often accompanied by calls to rein in the facilities and protect communities from spiking electricity and water bills, as well as increased water use and noise.
At the same time, some Democrats and Republicans across the country have questioned if constraining data centers will allow the Chinese to catch up with U.S. artificial intelligence companies.
Whitmer has faced increasing criticism, including from progressive Democrats, for backing data center development in the water-rich state and appearing last month with OpenAI CEO Sam Altman and other executives for a groundbreaking at the site of The Barn, a $16 billion data center campus in Saline Township, southwest of Ann Arbor.
Google, which is building a project in Van Buren township with DTE Energy, backed Whitmer’s push.
“Google is proud to sign the Michigan Affordability and Responsible Growth Pledge. This builds on our national commitment to pay our own way, protect ratepayers, and bring new, clean energy sources to support reliable grids in all of the communities where we operate, including Michigan,” said Grace Walovich, Google’s regional policy and market development lead.
The governor’s move was immediately blasted by conservation groups that have been calling for a temporary moratorium until enforceable safeguards are in place.
“Pledges and promises are not enough. Michigan needs strong, enforceable data center regulations now. Michiganders deserve real protections against unchecked data center development,” said Tim Minotas, the legislative and political director for the Sierra Club Michigan Chapter.
But Jennifer Granholm, the former Michigan governor who served as Energy secretary under then-President Joe Biden, backed Whitmer’s pledge.
“Many of [these principles] reflect ideas that are gaining traction across the country: existing customers should never subsidize new AI demand; companies should pay for the infrastructure they require; they should bring new, additive clean energy and flexibility to the grid; and they should create meaningful benefits for the communities where they locate,” she said in a post on LinkedIn.
President Donald Trump has promoted data centers for their economic and security benefits, but he has also pushed developers to pledge to pay for their impacts to the electric grid. On Wednesday, he slammed Hochul’s executive order, calling it a “terrible decision” that will deprive the state of money and jobs.
Hochul has said a temporary pause is necessary for the state to approve environmental and affordability regulations.
Provisions of Whitmer’s pledge include minimum billing demand, contract termination fees, credit and collateral requirements, minimum contract terms and other efforts to ensure data centers are paying the full costs they are putting on the system.
Whitmer recently backed a package of Democratic bills before the state Legislature that would include protections like capping water usage. The legislation would also require data centers report on wastewater and pollution and strike community benefit agreements.
Michigan Democratic state Sen. Kevin Hertel said that package, which he is co-sponsors, aligns with Whitmer’s call for action. Hertel said he’s working to get Republican support for the bills, while arguing that a moratorium is “kicking the can down the road.” He also pushed back on the notion that Whitmer is following the White House’s lead.
“I wouldn’t say we’re following in tow, our tax policy put the first residential ratepayer protection in law anywhere in the country,” he said in an interview. “I think we’re actually leading.”
