Data Centers, An Important Emerging Issue in Michigan

Data centers, or buildings that house computers and associated systems can have significant impacts on our environment – including water use, land use and noise – as well as public health impacts, especially when the center employs backup diesel generators. In response to the impact data centers pose to the environment, Sierra Club is researching the issue and will recommend policies to lawmakers to ensure that centers operate as sustainably as possible in Michigan.

Sierra Club recognizes the need to respond to the potential significant adverse climate, environmental and health impacts of inadequately managed and unmitigated data center development. 

The magnitude of energy use by data centers presents a significant new hurdle to Michigan’s ability to meet its goals under the MI Healthy Climate Plan, which requires a 52% reduction in greenhouse gas emissions by 2030 and net-zero carbon emissions by 2050. Data centers also threaten the mandated 100% clean energy by 2040 standard in the recently passed Clean Energy and Jobs Act. The data center industry’s rapid growth will drive unprecedented increases in electricity demand. While data centers currently use approximately 9.7 GW of power nationally, their demand for electricity is expected to triple to 27 GW in the next few years. This increased energy demand means more climate pollution in Michigan and risks negating the state’s greenhouse gas savings from our energy efficiency programs and renewable energy development.

Our Chapter Position Statement

Michigan should establish and affirm clear safeguards to manage the growth and impact of this rapidly growing industry. Michigan has the chance to get it right from the start, unlike some other states that are playing catchup and facing the prospect of skyrocketing electricity rates, new or delayed retirement of fossil fuel power plants, and negative environmental impacts. Our more detailed position statement and recommendations can be found here.