As digital infrastructure and energy needs become increasingly central to our economy, Michigan is leading the way on responsible data center development–proving there’s no need to choose between environmental stewardship and economic development. During the 2026 Mackinac Policy Conference, industry experts explored what Michigan’s model gets right and where more coordination is needed, as well as the policy levers, regulatory frameworks, and public-private partnerships essential to turning data centers into community assets.
“Over 560,000 businesses in Michigan depend on Google tools to connect with their customers,” said Liz Schwab of Google. “The demand for digital services [and] cloud services continues to increase; the demand continues to increase as things get cheaper.”
Schwab emphasized that communities aren’t fully aware of the opportunity at hand; many misconceptions are floating, and without having ever even seen a data center, it’s easy to be resistant.
John Rakolta III of Walbridge refers to data centers as community golden tickets. Their economic impact and ability to build opportunities for a manufacturing state like Michigan make it the “least obstructive golden ticket you could have,” according to Rakolta.
Schwab references the Van Buren Township data center, nicknamed “Project Cannoli,” as a result of the Michigan sales and use tax exemption passed in 2024. It requires companies to certify 90% clean energy procurement, ensure ratepayer protections (no use of special utility tariffs), municipal water usage, ensure the municipal water utility has the capacity to serve them, and pay 150% of the prevailing wage — requirements that Michiganders have indicated preference on according to the latest Michigan Voter Poll from the Detroit Regional Chamber.
“The state has done a great job of laying that groundwork to say we want to welcome this investment in the right way and put the powers in the locals’ control to decide if they want these and where,” Schwab said. “Van Buren Township had long sought to attract the right type of industrial development to expand and diversify its tax base.”
The panelists for this session emphasized forward thinking by discussing what leaders should be doing to encourage and debunk misconceptions about the impact of data centers in Michigan. Many fears lie at the center of conversations about data centers with transparency; the state can thrive.
Jennifer Granholm, the 16th U.S. Secretary of Energy, says that building trust moving forward means transparency and listening to the community.
“Listening to the community, having the opportunity for hearing … and then taking their ideas and negotiating them into an agreement,” Granholm said. “The surrounding scaffolding has to be built in a way that the community feels like the data center is a partner and not taking something from them.”
This session was hosted by Google.
