The debate over data centers is often framed as a simple choice: embrace technological progress or stand in the way. That framing is wrong. Data centers are no different than any other business and should be treated likewise.

Artificial intelligence, cloud computing and the digital infrastructure supporting them are no longer optional luxuries. Data centers power everything from banking and logistics to traffic lights to a rapidly expanding AI economy. In other words, they help people get what they want.

But acknowledging the necessity of these facilities does not mean communities must accept every proposal as it comes. The issue should be less about whether to build data centers and more about whether Michigan’s current system for evaluating and approving them is working.

The United States is in the middle of a massive data center expansion. There are 3,000 data centers currently in the development pipeline, meaning they are either in the process of being built or approved for construction.

Data centers have met resistance. At least 20 projects have been canceled in just the first quarter of 2026, with dozens more currently facing serious opposition. But the benefits of data centers are widespread. So, the question becomes: Are existing processes sufficient to handle the local impacts of these projects?

Data centers offer clear economic advantages. They generate tax revenue and provide infrastructure for everything people do on the internet. They also make artificial intelligence possible, which economists expect to boost productivity in the coming years.

At the same time, data centers make noise, use local water resources, increase heat output, and add constant lighting associated with around-the-clock operations. Energy demand is another major factor, particularly in areas where existing infrastructure is not designed to support rapid increases in electricity consumption. Neighbors are naturally concerned about their effect on the area.

Michigan already ranks among the leaders in data center project rejections. Across the state, proposed projects have repeatedly collided with communities, triggering intense backlash, public hearings, and temporary moratoria. Current policy allows local governments to be pretty heavy-handed in stopping development, if local leaders so choose.

In addition, Michigan already regulates many of the environmental concerns surrounding data centers. Local governments establish nuisance rules to address the complaints of their residents. Water and wastewater systems can benefit by having more customers for their services.

But policy in Michigan also allows some projects to proceed without further approval by state and local officials. Whether those decisions should fall at the state or local level is a separate question, but either approach should focus on addressing impacts rather than restricting development outright. In that sense, data centers should be treated no differently than other businesses.

In practice, certain sites can accommodate large-scale facilities more easily because they already have the infrastructure needed to support them. Areas with existing electricity transmission capacity, access to power generation, or a history of large-scale development can often manage these projects with fewer disruptions and lower overall costs.

This is why proposals to co-locate data centers with existing or retiring power plants have gained attention. By building near established energy infrastructure, developers can reduce strain on the grid and avoid the need for entirely new systems. The same logic applies to large redevelopment sites, where land, infrastructure, and prior use patterns are already aligned with the scale of these projects.

If data centers are to be valuable and profitable, they should succeed on their own merits. That means no taxpayer subsidies, no shifting costs onto residents, and no reliance on public systems that were never designed to support them. They should function on the same terms as any business.

Data centers are not going away, nor should they. They are a fundamental part of modern economic infrastructure. But their continued expansion will depend on how well states like Michigan manage the process around them.

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