LANSING, Mich. (Michigan News Source) — What started as an economic development gamble is quickly becoming a political rethink in Michigan.

After lawmakers approved tax exemptions last year to entice massive data centers, the results came quickly: at least 15 hyperscale proposals have emerged across Michigan, stretching from the Grand Rapids region to metro Detroit.

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Now, two lawmakers from opposite parties—Reps. Jim DeSana (R-Carleton) and Dylan Wegela (D-Garden City)—are trying to undo those incentives, sponsoring a three-bill package that would repeal the data-center tax exemptions altogether.

They argue the scale of the developments has raised red flags. 

Critics say the facilities demand enormous amounts of electricity and land while delivering few direct benefits to nearby communities. In response, residents in multiple towns have organized opposition, pointing to the loss of farmland, pressure on power and water systems, and limited transparency around long-term utility agreements tied to the projects.

The debate is playing out most visibly in Saline Township, where state regulators are weighing whether to approve power agreements for a proposed $7 billion data center backed by major tech firms. Utilities say the project would lower costs for other customers, while critics—including Attorney General Dana Nessel—want a fuller public review before any approval.

Whether lawmakers will unwind the incentives remains uncertain, but the growing backlash suggests Michigan’s data center honeymoon may be short-lived.