Business leaders push data centers, warning Michigan may miss ‘golden ticket’
Business leaders at the Mackinac Policy Conference warned Michigan risks missing out on data center investments, calling them a 'golden ticket' for jobs and tax revenue, while local opposition and political pushback delay progress. Proposed projects in Saline Township (OpenAI/Oracle) and Van Buren Township (Google) face backlash over land, water, and energy demands, despite state tax incentives passed in late 2024.
Business leaders gathered at the Mackinac Policy Conference urged Michigan to accelerate approvals for hyperscale data centers, warning the state has only 12–18 months to capitalize on a global AI infrastructure boom. John Rakolta, CEO of Walbridge, whose company is building a $7 billion data center in Saline Township for OpenAI and Oracle, criticized local opposition as blocking economic opportunities. His son, JR Rakolta, proposed extreme measures like using Great Lakes water for cooling, arguing Michigan must adopt "any means necessary" to compete with states like Ohio, which already hosts over 200 data centers. Local resistance has stalled projects, including Google’s planned 282-acre facility in Wayne County’s Van Buren Township. Eleven Michigan counties have seen proposals, but communities have imposed moratoriums, citing concerns over land, water, and energy use. State Sen. Mallory McMorrow, facing criticism for supporting tax incentives, called for stricter guardrails to ensure transparency and environmental protection. Michigan passed tax incentives in late 2024 for data centers investing at least $250 million and creating 30 high-paying jobs, but political candidates like GOP gubernatorial hopeful John James reject framing data centers as a 'golden ticket.' James argued Michigan’s economy should prioritize its 10 million residents over external investments, calling the state 'open for business, but not for sale.' Garrick Rochow, CEO of Consumers Energy, warned delays could drive developers away, emphasizing data centers generate critical tax revenue for infrastructure like roads. The Detroit Regional Chamber, which promotes the projects, highlighted the urgency of streamlining approvals amid global competition for AI-driven data infrastructure. Opposition remains bipartisan, with candidates like Perry Johnson facing backlash for perceived corporate favoritism. Meanwhile, Walbridge’s Saline Township project and Google’s Van Buren Township plan illustrate the tension between economic growth and local environmental concerns.
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