Data center projects continue to generate controversy around the country. In part, that’s because a variety of different groups have competing interests – some in favor of them, some opposed and others with no direct view on data centers themselves, but with concerns that relate to aspects of data center operations and effects.

As a , I’ve seen these various conflicting forces at work in Michigan. large and small data center projects have been proposed in the state in the past two years alone, including one by the university where I work.

Michigan Gov. Gretchen Whitmer, center, has been criticized for participating in this photo op at the construction site for a new data center in her state.

Gov. Gretchen Whitmer is enthusiastic about bringing technology companies to the state, even at the sites of proposed data centers.

But not everyone is as excited. In just one example of the opposition these projects can face, the local water company where I live, the Ypsilanti Community Utilities Authority, told the state it a within its service area.

So the University of Michigan proposed a different site in the next town over, Superior Township. That town manages its own water but gets its supply by buying it from .

A look at some of the forces at play around these projects reveals the deep issues they raise. The fights about data centers can often take the form of collisions between companies and community members. But they also reflect conflict about social values, democratic systems and capitalist interests.

Tech companies

Tech companies have an obvious desire to store and process ever more data. And many key aspects of society rely on the , serving websites, handling online purchases and delivering emails, text messages and alert notices.

The latest push is related to the in the business world and in people’s lives – and the to process all those requests and filter through all the available information to provide responses.

The , to continue increasing profits for shareholders and to keep these tech companies seeking more . And the Michigan Legislature has openly courted tech companies, passing laws that they would otherwise have to pay.

Data centers, like this one in Georgia, use large amounts of electricity.

Electricity companies

Many power companies are regulated by state or local governments and are not allowed to make profits off maintaining existing service or selling electricity. Their profits come from , and new power lines – and , with a markup for profit.

A data center can require significant investment in power generation and transmission – a data center proposed by Google in Van Buren Township, Michigan, for example, would require “ – a massive amount of power equivalent to the demand of about 2 million homes,” according to a local news report.

So a power company is likely to be eager to capitalize on the opportunity for a new major customer and may be willing to endure some amount of public backlash.

Power companies that operate in small geographic areas are highly dependent on the success of the municipalities from which they draw their customers and in which they build their infrastructure. In these situations, they have a vested interest in local economic growth, specifically the movement to the area of companies that supply jobs and, therefore, workers. This drives them to by lobbying for zoning changes to enable data centers.

that operate regionally or across entire states are less tied to the economic success of a specific municipality within their service area. But they are also able to target their influence at state lawmakers. For example, DTE Energy assured state lawmakers that the proposed data center in Van Buren Township .

People packed a local meeting room in Evanston, Wyo., for a public hearing on a proposed data center.

Community leaders

Community leaders and elected officials are often interested in the jobs that tech companies promise will come with the data centers, so they or other legal changes.

Although , they do have the potential to contribute to local property taxes, which can appeal to small towns without many other options.

Cities and towns are always , seeking additional tax revenue. That can lead them to feel pressure to build new roads, modify their land-use ordinances and approve requests from companies wishing to build within their boundaries.

My research has found that this pressure exists . This pressure has increased as cities have sought to reduce taxes on residents. The solution they see to getting fewer dollars out of existing residents is to bring in . That makes them .

However, not every community leader is on board with data centers. Some oppose them but feel , as occurred in Ypsilanti Township and as well.

People in Saline, Mich., hold signs opposing a data center proposed in their community.

Everyday people

In many communities, everyday people concerned with oppose the data centers.

They are also on utility ratepayers, taxpayers and those who must experience the environmental effects. People’s power, exercised through democratic processes such as public hearings, ordinance revisions and elections, can be and aligned groups.

But voters do have power. In June 2026, , state Senate President Stuart Adams, who had helped get approval for a massive data center in the northwestern part of the state.

Whether a data center moves forward in a municipality ends up being a matter of how public officials sort through the motivations and sociopolitical power of all these players.

Original article
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