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Emerging issue: data centers

Image credit: Related Digital
Date Posted: April 28, 2026

Proposals for the expansion of data centers popping up across Michigan have been in the news a lot lately. The demand is being driven by the technological revolution of Artificial Intelligence (AI).  

Proponents of data centers cite their potential to spur redevelopment in blighted areas, support development in rural communities, and create jobs. Opponents, however, bring up the amount of energy and water that they utilize. Currently, water use for all users is regulated at the state level through a water withdrawal assessment tool that estimates the potential for adverse impacts to the resource. Some fear that adding additional water regulations specific to data centers could set a precedent for applying similar requirements to other large water users such as agriculture.  

Some communities are also pushing back by pursuing zoning changes that would restrict the ability of data centers to locate in their area.  

Questions to Consider

  • Should the state override local zoning decisions for data centers, or should local governments retain control?  
  • How can water resources be protected without unfairly restricting certain industries?  
  • How can local governments effectively plan for data centers, and how can farmers be involved in that process?  
  • How can we balance private property rights with the need to preserve farmland?  

Policy References

MFB Policy #63 Local Government

MFB Policy #81 Land Use

MFB Policy #89 Water Use & Research  

MFB Policy #90 Water Withdrawal Regulation 

Submit a policy idea on this topic!

If you’re a Farm Bureau member and have an idea or amendment that you think should be Farm Bureau policy, we want to hear it! Our quick online form makes it easy to get involved in Farm Bureau’s policy-setting process.

Matt Kapp headshot

Matt Kapp

Government Relations Specialist
517-679-5338 [email protected]