Claim vs. Truth: Data Center Facts (Howell Twp)

Partnership & Economic Impact

CLAIM:

The data center will be a long term partner investing in people, progress and possibility.

TRUTH:

Data centers are classified as low job density, with industry standards of low operational staff and high levels of automation. When a company lacks utilizing local workforces there is little buy in on the company's part to the success of the community; no one within the company is local and holding them accountable to make good on promises or even to stay operational.

Data centers have a life span of 15-20 years, with some rare occurrences of sites still being utilized at 25 years; when compared to other industries with high local employment and longer facility lifespans data centers come up short to prove they are the best use for the land they demand.

CLAIM:

Data centers draw other desirable businesses to the area.

TRUTH:

While data centers do initially attract some other related industry such as solar and battery energy storage systems, this is often short lived. As they near the end of their life expectancies (which seems especially short given the lenghty construction phase that can last close to a decade) they become no longer economically viable to upgrade, the facility is then left behind, valuation and tax revenue plummet, and it becomes a deterrent to new business wanting to invest in the area. Additionally one data center facility is often followed by others in close proximity, creating the potential for only compounding the issue.

Water Use & Well Impact

CLAIM:

The data center will use significant water (est. 3 million gallons) per day, but it will be cleaned, treated, and returned to the aquifer to be used by the public.

TRUTH:

Data centers often treat the water used in cooling systems to prevent corrosion, bacteria growth, and total dissolved solid (TDS) build up with refrigerants and water treatment chemicals. This has resulted in environmental advocate concerns about Pfas, commonly referred to as “forever chemicals”, contamination. Pfas chemicals have been linked to cancer, birth defects, kidney disease, and other issues.

Federal regulations are lacking and do not require companies to report the volume of chemicals they use or discharge. Chemically-treated water is not fit for human consumption or agricultural use and cannot be returned to the aquifer or the public water supply.

CLAIM:

If selected, a “closed loop” cooling system would use very little to no water.

TRUTH:

Data centers use heat exchangers to transfer heat from servers to cooling systems, either through air or water. Even when a closed loop system is used, approximately 80% of the water used in these systems evaporates, and the rest is discharged to local wastewater facilities. Therefore, to say these systems are “closed” is misleading, as they require a constant supply of water.

In addition to water used to cool servers, data centers indirectly consume large amounts of water through the electricity they use - over half of which is generated by fossil fuel power plants October 2025 1

that require substantial water for steam production. In some regions, nearly 75% of water used by data centers is tied to their electricity use. This indirect water use contributes to water stress, particularly in drought-prone areas and during peak summer demand.

In 2023, the Lawrence Berkeley National Laboratory estimated that U.S. data centers consumed 211 billion gallons of water indirectly through power generation.

CLAIM:

Development of the data center will not affect local wells. The public water system has the capacity to meet the company’s needs, and safeguards are in place to ensure wells cannot be impacted.

TRUTH:

Dewatering is the process of removing water from the soil to prepare the area for excavation and development. The goal of the dewatering process is to lower the water table, which can also reduce water levels in nearby wells or even cause a well to go dry.

Regarding capacity, no site-specific capacity study or aquifer test has been released. “Capacity” only refers to pumping ability - not to the long-term sustainability of the aquifer, which the Michigan Department of Environment, Great Lakes, and Energy (EGLE) reviews separately.

The proposed data center would use MHOG water pulled from the Marshall aquifer, which spans more than 52 Michigan counties and is made up of sandstone. Sandstone is particularly porous which makes it vulnerable to contamination and if overused, can result in the disruption of the natural replenishment cycle of the aquifer.

Electricity

CLAIM:

Residents will not pay for upgrades made to any DTE electricity infrastructure or distribution upgrades related to this project, as the undisclosed company will cover all the costs.

TRUTH:

Even when data center companies claim they'll cover the costs of their electricity use and upgrades, residents often end up paying more. Even in a regulated energy market such as Michigan, energy companies can request the passage of rate increases by the state, specifically the Michigan Public Service Commission (MPSC). In Michigan, DTE Energy has requested a rate increase every year since 2015.

The current requested increase of more than $574 million, if approved, will result in an 11% increase in residential electricity bills and was filed just 3 months after DTE received approval by the MPSC to increase rates by $217 million.

While there is a current Consumers Energy proposal that backers say would, if passed, add further resident protections so residents aren’t left footing the bill, advocates say that this proposal doesn’t go nearly far enough to protect residents (and there is currently no related case underway for DTE).

Another issue resulting in higher prices for residents is a lack of transparency in contracts between utility and data center companies. These contracts are confidential, not fully reviewed by state regulators, and can include heavily discounted electricity rates for data center companies of which Michigan may already be seeing the impacts.

Noise Pollution

CLAIM:

The data center noise will only be about 60 decibels and the undisclosed company will comply with all noise regulations.

TRUTH:

Noise pollution is a serious public health issue with studies linking acute noise exposure to hypertension, heart attacks, and incidents of stroke. Data centers include hundreds of servers and ancillary equipment, such as HVAC units and generators, that can produce noise levels in excess of 96 decibels at the facility - with the low-frequency hum carrying more than 2.5 miles depending on facility design.

Residents near data centers have cited sleep disturbances, headaches, and increased stress and anxiety levels. While data center noise at a distance may only register at 60 decibels, similar to that of normal conversation or office noise, it is 24/7 - it never stops. Imagine constant conversation-level noise all day and night, while you try to work or sleep.

For both humans and animals, this persistent noise is perceived as a direct threat. For animals, this distracts them from attending to other biological needs. Studies have shown that sustained noise can impact their ability to locate habitats, migrate, avoid predators, and forage for food.

Tax Revenue & Jobs

CLAIM:

The data center could generate millions of dollars in tax revenue, especially for schools, fire, and police.

TRUTH:

Under Michigan’s new Enterprise Data Center laws (Senate Bill 237), data center developers and their contractors are exempt from Michigan’s 6% sales and use tax on nearly all construction materials, servers, and equipment through 2050 - with potential extensions through 2065. According to Bridge Michigan, this exemption is estimated to reduce state and local tax revenue by $90 million dollars.

The 6% sales tax is a primary funding source for the state School Aid Fund (SAF), which delegates funding to K-12 public schools on a per pupil basis. These tax exemptions directly reduce the amount of money available to local and statewide schools.

At the Data Center Community Meeting at the American Legion 141 on October 14, 2025, Howell Township Assessor Brent Kilpela explained that while the proposed project may appear to add substantial tax revenue, Michigan’s new laws and tax structures mean that most of those dollars will never reach schools, local services, or residents.

In addition to substantial state tax breaks, the developer may also apply for an Industrial Facilities Tax (IFT) abatement which would cut their property taxes by roughly 50% for up to 12 years. Kilpela confirmed that while local property taxes would still be levied, this abatement would reduce the community’s actual benefit by half.

CLAIM:

The data center will generate 1,000 jobs at peak construction, with hundreds of employees, vendors, and contractors badging into the facility and opportunities for growth if additional phases are built.

TRUTH:

While some local construction jobs may be generated by this project, data center developers typically utilize the same primary contractors on data center projects across the country. For example, the primary contractors involved in Meta’s largest project, a $10 billion data center in Louisiana, are Turner Construction Company, DPR Construction, and M.A. Mortenson. These same firms were also responsible for building Meta data centers in Jeffersonville, Indiana and Rosemount, Minnesota.

While there are union-negotiated agreements that support the hiring of local construction workers, these agreements don’t always result in local jobs because of highly technical qualification requirements that may exclude local workers. As an example, data center development requires specialized roles that extend beyond traditional trades such as fiber optic technicians who require unique certifications in connecting complex cable networks, fiber splicing, and testing.

Once built, data centers need very few staff. Despite billion-dollar price tags, these facilities are largely automated. Business Insider analysis found that even the largest data center employed less than 150 workers, with some employing only a few dozen people.

Claim vs. Truth: Data Center Facts (Howell Twp)

Partnership & Economic Impact

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Water Use & Well Impact

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Electricity

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Noise Pollution

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Tax Revenue & Jobs

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