As Michigan grows as a hub for digital innovation, you might be hearing more about data centers being built across the state. These facilities are essential for things like e-commerce and cloud computing to artificial intelligence and local business operations. But with this growth, some residents may wonder whether expanding our energy infrastructure to support data centers could have consequences like higher utility bills.

It’s important to know that expanding energy infrastructure for data centers does NOT raise rates for existing customers. Michigan law protects you, and the reality is that these projects benefit our communities in more ways than you may realize.

Michigan Law Protects Your Utility Bills

One of the most important protections for Michigan ratepayers is a law, which prohibits passing the costs of new energy infrastructure for data centers onto existing customers. In other words, the companies behind these new data centers are required to pay for all infrastructure improvements needed for their operations—not Michiganders.

Our Grid is Ready and has Room to Grow

Thanks to careful planning and investment, Michigan has ample excess energy capacity and is well-prepared for this growth. This means our grid is ready to support new data centers without burdening current ratepayers. In fact, as a peninsula, the power we generate has limited places to go. Selling it to data centers is a smart way to make the best use of our existing resources.

Data Centers Help Lower Costs and Improve Reliability

Here’s another important benefit: Data centers – much like a manufacturing plant - will help spread energy infrastructure costs across a wider customer base. By adding these large customers to our grid, utilities are able to make the cost of maintaining and improving our energy infrastructure more affordable and more reliable for everyone.

Direct Community Benefits

The impact of data centers goes far beyond energy. These projects bring significant economic benefits to Michigan communities:

Job Creation: Construction and operation of data centers create good-paying jobs for local workers.
Local Revenue: Data centers generate millions in local taxes, supporting schools, first responders, roads, and community services.
Innovation and Investment: Their presence attracts other tech businesses, supports education, and drives further investment in our communities.

Previous data centers have added investments into communities across the country, including in Ohio and Arizona, where they help bring economic activity, increased tax revenue, local jobs, and more.

As conversations around data centers continue across Michigan, here’s what you should know:

Michigan’s energy grid is well-equipped and carefully managed to support this kind of growth.
State laws are in place to make sure existing customers’ utility costs remain protected.
Data centers cover the costs of their own infrastructure—and they also bring new jobs, local tax revenue, and innovation to our communities.

Looking Ahead

At the Alliance for Michigan Power, we believe in a future where growth and progress benefit everyone. That’s why we’re committed to sharing the facts about data centers and energy infrastructure. Together, we can build a stronger, more reliable, and more affordable energy future for Michigan.

Keep an eye out for more updates from AMP.

Data Centers: Strengthening Michigan’s Grid Without Raising Rates

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