Gov. Whitmer Launches Michigan Affordable and Responsible Growth Action Plan, Calls on Data Center Companies to Sign Pledge

FOR IMMEDIATE RELEASE
July 15, 2026
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Gov. Whitmer Launches Michigan Affordable and Responsible Growth Action Plan, Calls on Data Center Companies to Sign Pledge

Plan builds on strong protections, holds data centers accountable for their own development, and calls for further action to protect Michigan residents from energy costs

LANSING, Mich.-Today, building on Michigan's strong data center guardrails, Governor Gretchen Whitmer announced the Michigan Affordable and Responsible Growth Action Plan to ensure that companies pay the full cost of data center construction and operation, strengthen our electric grid, safeguard our natural resources, and are accountable for their development.

"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," said Governor Whitmer. "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. Let's keep working together to grow our economy responsibly and build a Michigan where every family can afford to thrive."

As part of the plan, the governor is calling on data center companies to sign on to the Michigan Affordability and Responsible Growth Pledge, which outlines the state laws and orders from the Michigan Public Service Commission (MPSC) that data center companies must follow to protect Michigan consumers from higher energy bills, safeguard Michigan's environment, be transparent, and create good-paying local jobs for Michiganders. The plan also calls on the legislature to adopt similar guardrails for data centers to protect ratepayers, including codifying the protections that the MPSC put into place to further ensure data centers pay the full costs they are putting on the system.

"As Americans confront the rapid growth of AI data centers, Michigan is stepping up with fellow states to raise the bar for ratepayer protections and environmental safeguards," said Casey Katims, Executive Director of U.S. Climate Alliance. "We applaud Governor Whitmer's efforts to hold data center companies accountable to lower people's costs, strengthen grid reliability, protect clean air and water, and comply with the state's strong clean energy standards."

Michigan Affordable and Responsible Growth Action Plan

The Michigan Affordable and Responsible Growth Action Plan includes two key pillars. First, the governor's call on members of the legislature to adopt the data center safeguards already put in place by the Michigan Public Service Commission into state law including:

• minimum billing demand,

• contract termination fees,

• credit and collateral requirements,

• minimum contract terms and

• · other efforts to ensure data centers are paying the full costs they are putting on the system.

Second, the Michigan Affordability and Responsible Growth Pledge, a package of commitments by signees to create good-paying jobs and ensure companies pay for all their own costs, including water and energy, so Michiganders do not see any additional costs.

Both aspects of the Michigan Affordable and Responsible Growth Action Plan will hold data centers accountable for their development and cement Michigan's leadership as the home to some of the strongest data center guardrails in the nation.

The text of the Michigan Affordability and Responsible Growth Pledge is below:

A Commitment to Michigan Families and Communities

Michigan welcomes companies that want to invest, create jobs, and strengthen our economy. With that opportunity comes a responsibility to be a good neighbor.

When it comes to data center development, Michigan has the strongest regulations and safeguards in the nation. The State of Michigan believes economic growth and consumer protection go hand in hand. Michigan laws and orders from the Michigan Public Service Commission ensure that companies pay the full cost of development, strengthen our electric grid, safeguard our natural resources, and ensure that the costs of private investment are not shifted onto residents or small businesses.

A Commitment from Data Center Companies

By signing this pledge, we agree to invest responsibly, operate openly, and work in partnership with Michigan communities to ensure our projects deliver lasting benefits while putting working families first.

1. Michiganders Will Never Pay for Data Center Energy Demands

Michigan households and small businesses will not see higher costs because of our operations. We pledge to bear the electric system costs directly attributable to serving our data centers, including generation capacity and grid upgrades. This includes paying for new generation capacity, all associated grid upgrades or expansions necessary to serve our data centers, and all energy costs incurred to serve our facilities.

2. Build, Bring, or Buy New, Additive Power Resources

We commit to securing new and additional energy, generation, capacity, or flexibility where needed to keep our operations from straining the existing grid. Further, we agree to pursue feasible opportunities to build or secure additional clean and renewable energy capacity in Michigan by investing in a diverse mix of technologies, such as solar, wind, battery, and other low-emission technologies, while prioritizing affordability for all ratepayers.

3. Long-Term Contracts That Protect Households and Small Businesses

We will sign long-term energy service agreements with utilities, pay for a minimum amount of generation capacity regardless of whether used or not under those agreements, and prevent stranded costs from falling on working families. This is in alignment with Michigan law preventing cost-shifting across all other customer classes.

4. Growth Should Help Lower Costs for Everyone

We affirm and support Michigan regulators' finding that adding large customers can lower costs for other ratepayers by helping defray the fixed costs of the electric grid.

5. Strengthening Grid Reliability for Families and Communities

We will make sure data centers help maintain electric grid reliability for Michigan families and small businesses. We will coordinate with grid operators to support flexible load solutions and demand management programs.

6. Compliance with Michigan's Environmental Protections

We commit to complying with all applicable environmental permitting and public engagement requirements, including those protecting air quality, water use and water quality, wetlands, and natural resources. We also agree to oversight and routine inspections from regulators and government entities.

7. Protecting Michigan's Freshwater

We commit to protecting local water resources by building and utilizing next-generation technologies that minimize water use, like closed-loop systems, purchasing water only from municipal systems with adequate capacity, or pursuing new and more efficient solutions for sustainable water use that come to market. We will pay our fair share for the water supply and infrastructure needed to serve the data center, which will help lower costs for Michigan households.

8. Supporting Jobs and Local Community Benefits

We will prioritize hiring Michigan workers and support local workforce training where available and feasible. We commit to investing in Michigan through tax contributions that expand the tax base. With this new funding, local and state lawmakers can support schools, bolster resources for emergency services, and fix infrastructure without raising taxes on working families. We further commit to funding the infrastructure required for our projects, so those infrastructure costs will never raise taxes on working families.

9. Transparency and Accountability to the Public

We will report our operations, environmental compliance status, and community investments, as may be required under Michigan's regulatory and permitting processes, and we will participate as required in public notice and comment processes.

10. The Bottom Line: Michigan Working Families Come First

We affirm that the cost of our operations will not be shifted onto Michigan families or small businesses. We will work to contribute to lower costs, stronger infrastructure, and greater economic stability for the communities we join.

Existing State-Level Protections

The Michigan Affordability and Responsible Growth Action Plan builds on the strong guardrails Michigan has instituted to protect natural resources, maintain the electric grid, and ensure consumers don't see rising energy costs due to data center development. These guardrails include:

Energy

In Michigan, residential rate payers will not see their costs go up due to data centers, or other commercial or industrial customers. State law requires utilities to serve each their customers' needs with resources from their corresponding rate classification.

In other states, if a new large energy load, like a data center, enters the system without a corresponding increase in supply, residents can see their rate go up. Data centers must also comply with Michigan's strong 100% clean energy standard that Governor Whitmer called for and signed into law in 2023.

On top of existing legal protections, the Michigan Public Service Commission requires data centers to sign longer minimum contract terms, ensuring they reliably cover costs to upgrade the grid; guarantee lines of credit and financial assurance with parent companies; pay termination and exit fees; and adhere to emergency reliability protections that force them to cut off power before other customers in emergencies to protect the grid.

Environmental Oversight

Michigan has a comprehensive set of laws to protect air, land, and water. These include Michigan's Natural Resources and Environmental Protection Act (NREPA) and the federal Clean Air Act. Data centers are subject to all these laws and the same requirements that apply to all large industrial facilities. The Michigan Department of Environment, Great Lakes, and Energy (EGLE) is responsible for reviewing, monitoring, and enforcing permits.

Water Use

Water use and protection is also regulated under the NREPA. Large quantity industrial water users can access either groundwater or municipally owned water facilities. For groundwater, EGLE is legally prohibited from approving a withdrawal that would cause an adverse impact under Part 327 of the NREPA. If a proposed data center impacts wetlands, inland lakes, or streams, permits are required. Finally, EGLE regulates all waste and wastewater discharges to ensure compliance with environmental standards.

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