Data Centers
A summary from LWVNI Enviromental Nework
Data centers are cropping up all over the country and impacting nearly every aspect of our work. The rapidly increasing electricity demand from these data centers is putting pressure on the grid, raising consumer utility bills, threatening state climate and clean energy goals, and posing health risks due to increased air pollution from fossil fuels. With stronger policies, Michigan can meet the rising demand from data centers by building more clean energy in our state while avoiding billions in health costs and climate damages at the same time.
Our report delves into the challenges and solutions with a national analysis using the National Renewable Energy Laboratory (NREL’s) Regional Energy Deployment System (ReEDS) model and includes state analysis and fact sheets for IL, MI, and WI.
Key findings for Michigan include:
😯Data center load growth could account for up to 57% of electricity demand growth in Michigan by 2030.
☀️With strong policies, Michigan can meet the challenge of increased electricity demand with renewables and storage.
💨Clean energy policies reduce heat-trapping emissions and help avoid the negative health impacts of burning fossil fuels.
💵The economic benefits of a clean energy future in Michigan far outweigh the costs.
The Michigan report includes the following policy recommendations:
🪟Require utilities to be transparent about their plans to meet the needs of new data centers.
➕Reinforce the state's current clean policies with a CO2 reduction policy applicable to Michigan's power plants.
🪙Enact financial policies to ensure clean energy investments continue flowing to Michigan communities.
🤑Protect ratepayers from the higher electricity costs that data centers are responsible for.