A new report finds that the rise in requests to build huge data centers across the country could reshape the size and cost of the electric grid in Michigan.

The Union of Concerned Scientists estimates that within five years data centers could require well over half of all the new power demand in the state.

One of the report’s co-authors, Lee Shaver, specifically analyzed the likely impact of data centers on Michigan.

Shaver says the question is not how much new electricity Michigan will need, it’s who will pay for it.

The following interview has been edited for clarity.

Lee Shaver: The utilities have what’s called an obligation to serve. So they are going to build enough generation capacity to be able to meet the demand from data centers. The way that the system is supposed to work is that whoever causes that new demand pays for it. But the amount of demand we’re seeing from data centers kind of upsets the way that these things have been done historically. There’s a much higher likelihood that customers other than the data center would end up paying for a portion of those costs.

The big difference is just how much larger the data centers are. As an example, the total size of the data center that DTE Electric was just approved to connect to their grid in Saline Township would be 1.4 gigawatts, which is equivalent to the energy demand of over a million homes.

If could take decades for a million people to move into a new city. It’s slow growth that the utility can plan for over a long timeframe. Those costs can be spread out very easily. But when you’ve got a million homes showing up in a community in less than two years, that’s a massive amount of growth. There’s tons of new infrastructure that has to be built. And the regulation just can’t accommodate that level of growth without the way that those costs are covered being distorted.

Quinn Klinefelter, WDET News: The Michigan Public Service Commission says the agreement between the data center and DTE includes strong protections against a big rate increase for customers. I’ve also heard that some utilities require owners of data centers to pay what’s called a “large load tariff.” Just what is that?

LS: The word tariff is a bit misleading, especially since tariffs have been in the news so much. But when a utility talks about a large load tariff, they’re talking about a set of terms and conditions that data centers have to agree to in order to be provided with electric service.

And there are a lot of really good and positive things in those tariffs that utilities are proposing, like minimum contract terms, minimum monthly billing amounts. The challenge is that, especially in Michigan, especially with the DTE data center that was just approved, there’s just not enough detail that has been made public from these large load tariffs and from the applications that the data centers themselves are submitting for the public to have assurance that the costs are actually going to be covered.

QK: Is there a point where you finally find that out one way or the other? Does it have to be when the centers are operating or can it be determined while they’re constructed?

LS: There’s several points in the process at which that needs to be done. Obviously the large load tariff needs to be in place when that contract between the data center and the utility is signed. There has to be transparency. A lot of that information, though not all of it, should be public so that it can be reviewed. And there should be regular reporting on at least an annual basis. The utility and the data center should be providing information back to the regulators to say, here’s how much energy was provided, here’s how much it cost, here’s how it was paid for. And at the same time, look at how the billing of other customers changed over that same time period.

QK: Does it take until the things are actually up and going before you can really find that out? Or can you tell that during the construction process?

LS: You need both pieces. You’re not going to get assurance that it happened properly until after things are up and running. But if you don’t have a good framework in place at the beginning to collect and share that data, you would never get any reassurance that it’s been done properly.

QK: Beyond purely financial considerations, I’ve heard some concerns about the possible health or other costs that could be associated with these massive data centers. In your view, is it reasonable to be worried about some of those effects?

LS: Absolutely. What we know today is that any new data centers coming in the near term are going to result in more fossil fuels being burned to provide them with power. And when we burn fossil fuels, there’s emissions of heat trapping carbon dioxide, nitrous oxide, sulfur dioxide and other pollutants that have measurable health impacts. Our report found that due to data centers being built over the next 5-10 years, there’s close to $20 billion worth of health damages that would be caused from air pollution, most of which would happen directly in Michigan. And the global climate damages are estimated to be over $400 billion across the 2026-2050 timeframe.

QK: Having analyzed the issue, what, in your view, is the best strategy for a state like Michigan to follow in regards to where or how many data centers are allowed in?

LS: We didn’t speak to whether or not specific data centers should be allowed to operate, but we do make a couple of recommendations from the policy side.

In addition to the steps that need to be taken to ensure that data centers pay for their own costs, we also recommend what we’re calling a CO2 reduction policy. We found that’s necessary because, while Michigan does have some really progressive clean energy and renewable energy standards, with the growth in data centers, those standards are not enough to continue Michigan on the path to reaching net zero carbon emissions. A CO2 reduction policy would essentially set a limit on how much fossil fuel can be burned in the state of Michigan. And by enacting that limit, over time combustion of fossil fuels will be reduced and all of those negative health impacts would diminish.

QK: Considering the current makeup of Congress and the White House, in your view, how realistic is it that such prohibitions could actually get through?

LS: Our recommendation is actually at the state level, for exactly that reason. And our modeling shows that regardless of policies elsewhere, if Michigan were to enact a CO2 reduction policy, it would have significant impacts on reducing emissions in Michigan.

How does a global community provide for the needs of its citizens without destroying the planet? That’s the crux of “Anthropause: The Beauty of Degrowth,” a new book out this month.

In the early days of the Covid-19 pandemic, society shut down for a few months. As humans stayed inside, animals returned to their old habitats and pollution eased as industry slowed.

Retired researcher—and new metro Detroit resident—Stan Cox looks at how that “anthropause” could be a preview of the necessary societal changes to save lives and the planet.

He spoke with All Things Considered – Detroit host Russ McNamara last month. Click on the media player to listen or read selected transcripts below.

Russ McNamara, WDET: Why did you write this book?

Stan Cox, Author: The main point I’m making in the book is imagining that we as a society, if we were to rapidly phase out fossil fuels and get by just on the energy that could be generated other ways; and if we stopped plundering the earth for minerals and cutting down forest and causing ecological damage; and we had less energy and materials, and had to allocate them carefully: people know that’s going to mean sacrifice. What am I going to have to give up and so forth?

And what I’m saying in the book is okay, yeah, there are certain things, obviously that will have to be given up. But let’s consider all of the dangers and nuisances, terrible stuff that we put up with an advanced industrial society that has all this energy and materials running through it.

We would be saying goodbye to a lot of those harms and ills by simply not doing a lot of the stuff that requires so much energy input. So the rest of the book, then, is going through specific technologies and activities and so forth that are really harmful to people and the environment, of course, that we would not have the fuel to undertake them, or we would be using resources for meeting people’s basic needs, and we wouldn’t be spending a lot of energy on these other things.

RM: You discuss this and I’m reminded of data centers to run artificial intelligence. People certainly don’t seem to want them and definitely don’t want these in their backyard because there is this concern about the high cost of electricity, and the amount of groundwater that is needed.

SC: That’s absolutely right. One of the big reasons these communities don’t want them is that they create this horrific noise at very high decibel levels and low low frequency noise, which is especially dangerous to human health. When I started writing the book, there wasn’t as much being said about A.I. and the data centers at that time, so I did eventually incorporated them, but the beginning of the second chapter is about noise pollution and and I just used it. It’s seemingly a very small thing, but it really brings out other issues. The leaf blower, especially the gas powered leaf blower, also produces this low frequency and very high volume sound—about eight times the decibel level that the World Health Organization says is safe – and they’re producing a wind about the speed of an EF five tornado. The low frequency sound can travel like three football fields. It’s still above the safe limit.

RM: So what are the societal impacts? Let’s say we start degrowth right now. What are the benefits?

SC: We can’t go on like we’re on the trajectory that we’re on now, because. A degrowth is going to happen. Either a chaotic, brutal degrowth where it’s a Mad Max kind of future, because we’ve tried to force growth to continue and have destroyed ecosystems

Or we can have a planned, rational degrowth that ensures that there’s enough for everybody and that we’re not causing ecological collapse. But there’s no way that growth can continue at this rate.

Sometime in the past three years, we passed a milestone. The quantity of human made stuff—that is everything that human society has manufactured or built or produced—if you weigh all of it up, the mass of all of that exceeds the total mass of all living things on Earth, all plants, animals, microbes, et cetera, and that quantity of stuff being produced is is doubling every 20 years. And clearly that can’t go on.

Herb Stein, an economist from the 70s or 80s was kind of the Yogi Berra of economists. He had a line: “if something can’t go on forever, it won’t” and that’s where growth cannot go on forever. So we have to pull back, create what I called in the book an “anthropause” of our own, and try to have a rational, safe and just reduction in the amount of economic activity for the good of everybody.

Opposition to a proposed data center in Saline Township continues as state regulators prepare to take public comment on environmental permits tied to the project.

The Michigan Department of Environment, Great Lakes, and Energy will hold a virtual public hearing Thursday to gather input on whether to issue permits to developer Related Digital. The permits cover impacts to wetlands, streams, and nearby waterways.

Tim Bruneau, a member of Stop Saline Data Center who lives near the proposed site, raised concerns about the project’s closed-loop cooling system. He says repeated circulation concentrates contaminants such as glycol, rust inhibitors, and nitrates, which would eventually be discharged into the Saline River.

The project includes filling and excavating wetlands, installing culverts in unnamed streams, and constructing multiple stormwater outfalls that would discharge treated runoff into the Saline River, Bridgewater Drain, and other waterways. One of the outfalls would be located within the Saline River’s 100-year floodplain.

The virtual public hearing begins at 6 p.m. Information on how to attend is available at michigan.gov/egle.