A statewide survey showing deep skepticism of data centers among Michigan local officials adds new context to two projects in the Greater Rochester area: Oakland University's proposed campus data center and Oakland Township's push to regulate the facilities.

Only 18% of local government officials across Michigan believe large-scale data centers are worth their costs, according to the University of Michigan survey released Tuesday, Sept. 22. Nearly half, 46%, disagreed that the benefits outweigh the costs. The rest were neutral or unsure.

The survey, conducted by U-M's Center for Local, State, and Urban Policy (CLOSUP), polled officials in 1,328 jurisdictions between March 30 and June 9, as first reported by Bridge Michigan.

Metro Detroit officials were the most favorable statewide, with 27% saying data centers are worth the cost. Greater Rochester falls within that region. Rural officials were the most opposed: just 12% saw net benefits, compared with 40% of urban officials.

"Data centers are polling about as well as herpes right now," Eric Paul Dennis, a research associate at the Citizens Research Council of Michigan, told Bridge Michigan. "We've got an election coming up, and there's a lot of tough talk."

Stephanie Leiser, director of the U-M center, said rural communities feel squeezed. They have cheaper land that attracts developers but bear a disproportionate share of the costs, she said. Local officials face resident opposition on one side and the prospect of expensive legal fights with well-funded developers on the other, according to Leiser.

Majorities of officials surveyed said data centers would hurt their communities' water supply (60%), utility costs (57%), public health (55%) and quality of life (53%). Only 2% of officials believed a majority of their residents supported data center development, according to the CLOSUP survey.

Nearly 6 in 10 local leaders called state and local regulation of hyperscale data centers a very high priority. At least 18 local governments across Michigan have voted for or proposed temporary halts to new projects.

Republican John James and Democrat Jocelyn Benson, the two candidates for governor, have both called for a moratorium on data centers. The major-party U.S. Senate candidates have done the same. A separate WDIV/Detroit News poll found 64.3% of Michigan residents opposed data center construction statewide.

Oakland University's Board of Trustees voted June 26 to authorize a development agreement with Fairmount Properties for a 20-to-26-megawatt campus data center near Parking Lot 37. The project, a public-private partnership with Fairmount Properties and DTE, would lease 90% of computing capacity to partner companies and reserve 10% for campus use. The board vote drew student protesters carrying signs reading "OU DON'T SELL OUT" and "NO AI CENTER," The Oakland Post reported Sept. 10.

The university is expected to enter a due diligence phase this fall. It retains the right to terminate the project for cause before the design phase. The next board update is anticipated after due diligence concludes in June 2027.

Oakland Township also moved to regulate data centers this spring. The township board scheduled a public hearing for April 28 on a proposed amendment to Zoning Ordinance 16 and adopted the amendment at its May 12 meeting, according to a Michigan data center tracker maintained by the law firm Baldori Law. The ordinance took effect May 28.

Michigan lawmakers in 2024 narrowly exempted large data centers from sales and use taxes to attract the industry. Rep. Joey Andrews, D-St. Joseph, who authored that tax-break bill, remains a proponent. He said the mood of rejecting growth is not healthy for the state, Bridge Michigan reported.

The survey found 13% of local officials themselves held a favorable view of data centers, while just 2% thought most of their residents agreed.