Overview:
- Gov. Gretchen Whitmer unveils voluntary pledge for data centers to cover their own costs and protect residents from higher energy rates, calls for legislation.
- Environmental groups saythe plan is insufficient, push for moratorium until stronger legal protections are in place.
- Environmental concerns around data centers include possibility of natural gas expansion and delays to Michigan's clean energy goals.
by KYLE DAVIDSON, Michigan Advance
July 15, 2026
Amid criticism for her support of data center development in Michigan and opposition to a statewide moratorium, Gov. Gretchen Whitmer on Wednesday unveiled a plan intended to ensure affordable and responsible data center growth while protecting residents from higher energy costs.
Whitmer’s Michigan Affordable and Responsible Growth Action Plan focuses on two main areas: cementing consumer protections within state law to ensure residents do not face higher energy rates when data centers come online, and a voluntary pledge for data center companies to commit to creating good-paying jobs, cover their own costs and abide by state-level environmental, energy and water use regulations.
“It’s simple: any data center company that wants to invest in Michigan must ensure working families do not pay a single penny for data center development or operations, protect our natural resources, and create local, good-paying jobs,” Whitmer said in a statement.
“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. I’m calling on all data center companies to sign the pledge, and on the Michigan legislature to codify every single one of our guardrails in Michigan law.”
Specifically, Whitmer asked lawmakers to move forward on legislation to codify data center safeguards developed by the Michigan Public Service Commission, which regulates energy utilities within the state.
As part of the pledge, data center companies that sign on must promise that Michigan residents will never pay for data center energy demands, and that these facilities will commit to building, bringing or buying additional energy resources and pursuing feasible opportunities to expand Michigan’s clean energy capacity.
Whitmer has also asked companies to commit to strengthening the reliability of the state’s energy grid, protecting freshwater and supporting jobs and community benefits.
Ben Poulson, the state government affairs director for the Michigan League of Conservation Voters, told Michigan Advance that while calling for ratepayer protections is a positive step, in order to fully protect the state’s resources Michigan will need strong legislation that puts the promises of the growth pledge into law.
Tim Minotas, legislative and political director at the Michigan Sierra Club agreed, telling Michigan Advance, “Pledges and promises are not enough.”
“Our state deserves real protections against data center development, which is why we have been calling for a temporary moratorium on hyperscale data center approvals until the Legislature enacts enforceable safeguards,” Minotas said.
“While I appreciate the attention and the need and understanding for safeguards to be in place, taking companies at their word, and just that, it’s just not enough.”
Both Poulson and Minotas raised concerns that the energy demand from these facilities could prompt the buildout of natural gas plants in order to power these energy-intensive facilities. Poulson noted the energy load growth associated with these facilities could prompt energy companies to delay compliance with Michigan’s clean energy law, which requires utilities to provide a portfolio of 100% clean energy by 2040.
Whitmer was criticized in June after she attended a groundbreaking ceremony for the controversial Stargate data center in Saline Township, posing for a photo with data center developers including OpenAI CEO Sam Altman, which fellow Democrats like U.S. Rep. Rashida Tlaib (D-Detroit) called “disgusting” and state Rep. Dylan Wegela (D-Garden City) termed as a “complete betrayal of the working class.”
Members of both the Republican-led Michigan House and the Democratic-led Michigan Senate have also put forth proposals to establish a moratorium on data center development until April 1, 2027.
Only one state has approved a statewide moratorium on large-scale data centers, with New York Gov. Kathy Hochul signing a yearlong pause on their development Tuesday.
Minotas said the Sierra Club is supporting the moratorium bills, and would continue to support them until the Legislature approves stronger regulations on data centers.
While Democrats in both the Michigan House and Senate have put forth proposals for stricter data center regulations, Minotas said the Sierra Club would be working to support the Senate package, viewing it as the strongest package between the two.
Shortly after Whitmer announced her action plan, a spokesperson for Google, which is developing a 1-gigawatt data center in Van Buren Township, said the company had signed Whitmer’s growth pledge.
“We understand that being a good neighbor means investing in Michigan’s future,” said Grace Walovich, the company’s regional policy and market development lead.
“Our project in Van Buren Township directly advances this commitment. In partnership with DTE Energy, we are enabling 2.7 gigawatts of new, clean energy resources – including solar power, battery storage, and demand response – to support the local grid, protect residential customers, and deliver an estimated $1.7 billion in long-term ratepayer savings.”
Meanwhile, Michael Egbert, vice president at Oracle, said in a statement that they are “grateful for Governor Whitmer’s leadership in attracting transformative investment to Michigan while protecting residents, ratepayers, and the state’s natural resources. We support the Governor’s commitment to ensuring data center companies pay their own way, and are building responsibly to meet every commitment in the pledge, including not increasing utility bills or compromising grid reliability.”
Michigan Advance is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Michigan Advance maintains editorial independence. Contact Editor Jon King for questions: info@michiganadvance.com.
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