Michigan Data Centers: The Weekly Download

Michigan Advance · Kyle Davidson · September 7, 2026

States Newsroom graphic illustration New Developments

The City of Ionia is scheduled to hold an informational meeting on data centers at 5:30 p.m. on Sept. 9 in the council chambers at Ionia City Hall. The city has not received any proposals from data center developers, WOOD TV’s Katie Rosendale reports , with city officials using the meeting as an opportunity to better understand the industry and what variables the city should consider if it is approached by a developer.

Updates

Ypsilanti City Council is one step closer to implementing a 60-day emergency moratorium on data center development. The city council gave its approval to the proposal on Tuesday, WEMU’s Caroline MacGregor reports , teeing up the moratorium for another reading before it can be passed in its final form.

Hyperscale Data, the owner of the Dowagiac data center at the center of a federal class-action lawsuit , announced that it has ceased Bitcoin mining at the facility as it prepares to provide data infrastructure for AI computing.

Following up on its previous report evaluating the policy controversies around data center development in Michigan, the Citizens Research Council of Michigan has released a second report focused on considerations local governments face regarding hyperscale data center developments. The report discusses the use of moratoriums, considerations around tax revenue, and community concerns, among other topics.

Legislative Action

State Senator and Michigan Republican Party Chair Jim Runestad announced plans to introduce legislation repealing a set of laws exempting data centers and their equipment from the state’s sales and use tax. “We shouldn’t be paying billion-dollar tech conglomerates to farm Michigan for its land, energy, and water. If they want to come here, they need to do it transparently and bring with them benefits for Michigan residents,” the White Lake lawmaker said in a statement .

News of Note

Michigan Advance’s Katherine Dailey examines U.S. Rep. John James (R-Shelby Township) support for local control on data centers despite the Republican candidate for governor’s previous support of a version of the One Big Beautiful Bill Act that would have barred state and local governments from enforcing laws or regulations against artificial intelligence models, artificial intelligence systems or automated decision systems.

Beth LeBlanc of the Detroit News revisits the 2024 expansion of Michigan’s sales and use tax exemption for data centers, noting that the laws’ provisions bar the Michigan Economic Development Corporation from releasing any specific information about data centers applying for or making use of the exemption.

Writing for Michigan Advance, Elinor Epperson delves into the concerns around the plans to pursue classified research into nuclear weapons at the University of Michigan and Los Alamos National Laboratory computing facility planned for construction in Ypsilanti Township.

A host of protestors greeted the more than 100 municipal leaders in attendance at a closed-door educational seminar focused on data centers, Abigail Taylor of News Channel 3 reports . Hosted by Professional Code Inspections, a company based in Allegan County, the event was intended to provide local leaders with “expert testimony explaining what to understand when it comes to planning for data centers, should the need arise.”

A statewide poll conducted by EPIC-MRA commissioned by the clean energy advocacy group Climate Power found that 73% of likely Michigan voters opposed federal tax breaks and other policies intended to speed data center development. It also found that 62% of voters opposed the development of data centers in Michigan.

The Investigators at Local 4 probed into public transparency concerns raised by residents of Lenox Township after a Freedom of Information Act request uncovered an email to Lenox Township Supervisor Anthony Reeder Jr. from a property owner stating “We have been approached by a large data center developer that would like to meet with you.”

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