Consumers Energy: Data Centers Will Support Lower Costs for Michigan Families

Consumers Energy: Data Centers Will Support Lower Costs for Michigan Families

Grand Rapids, Mich. Friday, March 06, 2026

Michigan's strong protections ensure large energy users pay their own way as West Michigan attracts digital infrastructure investment

As data centers look to locate in Michigan, Consumers Energy says the company has strong protections in place to ensure that growth does not raise energy bills for other customers.

Through oversight from the Michigan Public Service Commission (MPSC), Michigan has the strongest protections in place for customersto ensure they do not pay for data centers. Large new energy users - including data centers - must pay all the costs required to serve them. That includes the infrastructure and energy resources necessary to power large-scale facilities. They cannot shift costs to other customers.

Michigan's framework is built around a core principle: large load customers, including data centers, must pay their own way, and can't cause other customers' costs to increase.

"Consumers Energy is fighting for residential customers through strong protections that ensure data centers pay their share of grid costs," said Lauren Snyder, senior vice president and chief customer and growth officer at Consumers Energy. "This investment supports Michigan's economy and helps keep energy bills affordable for families and small businesses."

Additionally, the energy provider has taken proactive steps to support our customers in the rate design process to ensure strong protections require large technology companies, like data centers, pay for their energy in a way that provides benefits for all.

Customer Protections Include:

• Data centers must pay 100% of the energy infrastructure that their project requires, including transmission, generation, and distribution costs.
• Unlike other customers, large energy users must pay a minimum demand charge, at least 80% of their cost of service, which includes production and distribution capacity charges along with other infrastructure resources regardless of how much energy they use.
• 15-year minimum contracts are required, with financial penalties for early exit or withdrawal.
• Large users will allow the utility to spread fixed costs across a broader customer base, reducing cost pressure on all customers.

Consumers Energy fought for these protections that took effect last November.

The Grand Rapids region is drawing growing interest from developers looking for locations to build new digital infrastructure. The region's reliable electric grid, access to fiber networks, and cooler climate make it an attractive location for data center development.

Consumers Energy is Michigan's largest energy provider, providing natural gas and/or electricity to 6.8 million of the state's 10 million residents in all 68 Lower Peninsula counties. We are committed to delivering reliable and affordable energy to our customers 24/7.

Learn the facts on data center development at ConsumersEnergy.com/MichiganGrowth

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Media Contact: Matt Johnson, 517-888-1539 or [email protected].