Both candidates vying to replace Gov. Gretchen Whitmer have distanced themselves from the data center developments she has championed, calling instead to halt new construction of the energy- and water-intensive facilities that warehouse the computer servers powering the artificial intelligence boom.
Democratic gubernatorial nominee Michigan Secretary of State Jocelyn Benson has called for a moratorium on data centers, which have emerged as a key election issue.
"No data centers will be built in Michigan unless there are rules in place that make them negotiate with communities in the open. We will ban them from getting tax breaks and using up our water, and we will require them to pay for the power they use," Benson said in a video posted to social
media Tuesday, Sept. 8.
U.S. Rep. John James, of Shelby Township — the Republican gubernatorial nominee — also has called to pump the brakes, saying there should be "no new data centers until we have a plan to protect our people" during aJuly GOP primary debate on WOOD-TV. Environmental protections and ensuring electricity bills don't go up are among the standards he has proposed as part of his moratorium.
Abby Clark, the Michigan Director of Government Affairs for the Natural Resources Defense Council, celebrated bipartisan support for the need to tackle data centers but wondered what comes next.
"Moratorium until what?" She said data centers currently benefit from inaction.
"These are the richest companies on the planet. We need our leaders sticking up for our interests and protecting the public from the cost, and protecting our energy and water resources and that requires statewide regulation, which requires legislative action," Clark said.
Neither Benson nor James initially took a strong stance on data centers when controversy over the OpenAI hyperscale data center in Saline Township began to stir in late 2025, and both candidates have faced scrutiny on the issue. Benson's husband Ryan Friedrichs, a vice president of development at The Related Cos., was working on a data center development in Michigan until he pivoted to a new role. The pro-James PAC Mission Michigan's Chief Strategist Joanna Burgos slammed Benson for promising to oppose "deals made behind closed doors" after her husband's employer faced criticism over transparency in its data center project in Saline Township.
Benson's latest call for a moratorium moves beyond her previous pledge with her new call to ban public subsidies for the projects.
President Donald Trump – who has endorsed James – has been a vocal supporter of data centers, calling on communities to "let Data Reign" in an August social media post. Benson Campaign Press Secretary Rajan Srinivasan, in a Sept. 9 statement, attacked James for voting for a previous version of Trump's One Big Beautiful Bill Act that included a broad ban on AI regulations from states and local governments, understood to preempt local control of data centers. Srinivasan also called out campaign contributions to James from corporate leaders involved in data center development.
Whitmer, who has endorsed Benson, has celebrated data centers as a way to boost Michigan's economy. At the start of the year, she approved the tax breaks for technology companies that build the facilities in Michigan. And she has heralded the controversial hyperscale data center in Saline Township.
"Michigan has always been a leader in building 'the next big thing,'" she said in a public comment submitted in December 2025 in support of the project.
Amid pushback, the governor has asked companies to voluntarily commit to environmental and energy cost protections and called on state lawmakers to pass additional protections, such as termination fees for data center energy contracts.
Both major candidates in the governor’s race embracing pauses on new data center developments is a likely reflection of Michigan voters' souring views on the facilities.
Across the state, residents in communities where new data center developments are proposed have expressed myriad concerns as worries over rising energy costs, noise pollution and impacts on local water supplies mount. Data center proponents counter by pointing to rules set by the Michigan Public Service Commission that state developers must pay for the power they use.
Earlier this year, lawmakers in the Michigan Senate introduced bills to codify those rules into state law. Those measures have languished in Lansing alongside other data center proposals, including a bill to require community benefit agreements between the data center developers and the local areas where the developers want to open a facility. If such an agreement isn't provided, the local community would be able to deny any site plan or rezoning request from a developer.
Although Benson's campaign has taken a stance calling for data center guardrails, measures haven't advanced through the Senate while her running mate Senate Majority Leader Winnie Brinks, D-Grand Rapids, holds the gavel through the remainder of the chamber's term this year.
Currently, state zoning laws make it difficult for communities to stop data centers from being built in their jurisdiction if they already provide zoning for industrial uses.
Dozens of communities have instituted data center moratoriums at the local level in Michigan but statewide measures pausing new developments are rarer. New York Gov. Kathy Hochul signed a bill instituting a one-year data center moratorium on hyperscale data centers in July, the first statewide pause of its kind in the U.S.
But data center proponents warn that a blanket ban or pause on developing new facilities in Michigan could handicap the state's economic competitiveness. Data center demand has increased as generative artificial intelligence and large language model usage becomes more commonplace.
Michigan would miss out on investments from data center developers as more digital infrastructure is built if a moratorium was put in place, said Michigan Chamber CEO Jim Holcomb.
"I don't think it’s acceptable to sit back and say we're not going to think about this for a year," he said, calling on policy makers to "do the hard work" and engage in debate on instituting data center guidelines in Michigan.
Contact Clara Hendrickson at chendrickson@freepress.com or 313-296-5743. You can reach Arpan Lobo at alobo@freepress.com.
This article originally appeared on Detroit Free Press: As voters sour on data centers, governor candidates embrace moratorium
