For years, everything from corporate health giants to private utility monopolies have used their wealth to influence Michigan’s politics. Now, the looming threat of energy and water-guzzling AI data centers makes this problem even more dire. But this November, we have a crucial opportunity to stop it.
Here’s what’s at stake and why Michiganders should vote YES on Proposition 2.
How AI Data Center Money May Shape Michigan Politics
In the last year and a half, we’ve faced more than two dozen data center proposals across Michigan. And decisions around their approvals and how they may be constructed face pressure from a lot of players who stand to benefit, including corporate utilities, powerful developers, and multi-billion-dollar tech corporations.
These same big players are allowed to pour mountains of cash into influencing our elected officials. Already, an AI-affiliated super PAC spent nearly $300,000 to help an ally win his primary for Michigan’s District 11 House seat.
Data centers will have a huge impact on Michigan communities. They threaten our water supplies, energy reliability and affordability, and our clean air. They impact our energy and water infrastructure, public funds, our local economies, and our health.
Additionally, data centers are eligible for lucrative tax breaks (previous data center tax breaks have already cost the state $13 million in funds). And if energy utilities expand to accommodate data centers’ gargantuan energy use, state regulators may allow them to raise our bills to pay for new construction.
With so much at stake, state leaders face big choices on whether and how they’ll protect their constituents. Wealthy corporate interests must not have outsized influence.
The Big Money Problem: It’s Not Just Data Centers
Energy-hungry data centers are coming to a state already plagued with energy issues. We’re seeing relentless yearly rate hikes and the worst electricity reliability in the country.
Nevertheless, DTE and Consumer Energy, our two biggest private utility corporations, are raking in billions in profit while spending big to influence state politics. In 2022 — the last time all seats in the State Senate and House were up for election — a staggering 93% of state lawmakers had at some point accepted political contributions from DTE PACs, executives, or lobbyists.
Utility corporations’ political spending becomes even more concerning in the context of a data center boom and related energy demands. State energy regulators are currently considering the impact of the proposed 1.4GW data center in Saline Township for Oracle and OpenAI and a 1GW data center in Van Buren Township for Google. Together, they could consume more electricity than 1.5 million homes.
At the same time, DTE and Consumer Energy are seeking approval to build $10 billion-worth of new gas-fired power plants, and may request to saddle ratepayers with the construction bill by raising electricity rates.
From passing regulations to approving projects and government contracts, Michigan leaders make big decisions that directly impact our lives and wellbeing — and corporate bottom lines.
Under the status quo, corporations can sway these decisions to their benefit with outsized, clandestine spending. Meanwhile, everyday Michiganders are boxed out of decisions, obstructing meaningful change to put people over profit.
The Solution to Michigan’s Big Money Problem: Pass Prop 2!
On November 3, Michiganders have the chance to vote YES on Proposition 2, a crucial ballot measure to get big money out of state politics. If passed, the measure would put commonsense guardrails on corporate political spending.
It would:
- Ban monopoly utility companies, like DTE and Consumer Energy, from donating to state officials and political party committees that regulate them.
- Stop major government contractors from funding the campaigns of officials who would oversee their contracts.
- Close Michigan’s “issue ad loophole,” which allows corporations to fund ads without telling voters who paid for them.
- Require digital and internet political ads to disclose where their funding comes from.
We deserve leaders who answer to the people they represent, not the corporations that fund them. That’s why it’s crucial that we pass Prop 2!
Michigan voters can find Proposal 2 on the back side of the ballot. Vote ahead of November 3 by voting absentee or visiting an early voting location, or vote on election day! Michiganders can visit the Michigan Voter Information Center for early voting information and their polling location on November 3.
To support Prop 2 and get big money out of politics, Michiganders can get the word out — make sure friends and family know to flip their ballot over and vote YES on Prop 2 — and join the Michiganders for Money Out of Politics campaign. For more information on how to get involved, visit mopupmichigan.org.