The Great Lakes State is paving the way for big things.
Data is coming to Michigan, with at least 10 different cities or towns in the Lower Peninsula region of the state being scouted for potential data center projects. This follows the global trend of data centers — including hyperscalers — building out in every direction. Where these facilities go, a reliable supply of energy must precede them.
Ready to Deliver
For data center business stakeholders looking to build their hyperscale projects in Michigan, reliability, affordability and transparency are all important factors to consider. And the state certainly has the infrastructure and drive to deliver on all counts.
“Consumers Energy is proud to power Michigan’s future,” says Lauren Snyder, senior vice president, customer experience & growth, Consumers Energy. “As new businesses, including data centers and manufacturers, look to grow here, we plan carefully to make sure our energy system is ready to serve them and every customer across our state. We work with developers and stakeholders on a project-by-project basis as they move forward and we are committed to a transparent process that includes public outreach, communications and community collaboration.”
Michigan is no stranger to advanced manufacturing, big tech projects and scale. There are currently 59 data centers listed in in 11 different markets in the state, according to Data Center Map. Metro Detroit has 27, followed by Grand Rapids at nine, Lansing at seven and Ann Arbor with five data center projects. Ann Arbor got an especially big win in October 2025 when nearby Saline Township was announced as the next site of a 1GW, multibillion-dollar data center as part of OpenAI and Related Digital’s Stargate project.
“Energy readiness isn’t just important — it’s critical for attracting and retaining investment in our region. Our commitment is simple: We’ll serve Michigan’s growing energy needs for the long haul, so businesses can scale confidently and compete globally.”
— Lauren Snyder, Senior Vice President, Customer Experience & Growth, Consumers Energy
For Consumers Energy, a subsidiary of CMS Energy and the largest utility in Michigan, the challenge to provide energy to meet soaring demand is viewed as a promising opportunity.
“Data centers, advanced manufacturers and large-scale businesses are fueling this accelerated growth in Michigan,” says Snyder. “It’s a tremendous opportunity for us and with that comes historic energy demand, which Consumers Energy stands ready to support. Energy readiness isn’t just important — it’s critical for attracting and retaining investment in our region. Our commitment is simple: We’ll serve Michigan’s growing energy needs for the long haul, so businesses can scale confidently and compete globally.”
Consumers Energy provides gas and electric power to nearly 7 million residents in the Lower Peninsula of Michigan, having served the state since 1886. The utility is already on track to add more natural gas, solar and battery storage projects to support additional generation in the near term to meet growing demand and replace retiring resources. And the company has a steady power supply for big tech customers.
“Not only do we have plenty of reliable energy supply to meet today’s growth demands, but we can also support future expansion across our state even on the hottest days of the year,” Snyder explains. “Our system is built to ensure we have the energy we need to power Michigan year-round, and we have excess supply that we are confident can meet the growing demand. Combined with our future supply plans and energy efficiency programs, we have no doubt we can continue to provide all customers with the energy they need.”
There has been a proliferation of inquiries for reliable and scalable power to operate data centers in the state. Site consultants are seeing this, too. Common questions asked are: How much power do you have? How much can I get? What is your plan if we continue to locate in Michigan? For Consumers Energy, there is a planning process in place to answer all these questions and meet the expectations and needs of large-load customers.
Fair Rates for All
In the company’s long-term Integrated Resource Plan, Consumers Energy details the evolving energy landscape and how it aims to meet increasing demand with cost-effective generation over the course of the next 20 years. As future large customers come online, this blueprint will transparently demonstrate how the company will reliably and affordably meet the demand of all customers.
As for concerns about whether all this hyperscaler activity will impact rates for customers who continue to locate in Michigan, the state has several regulatory safeguards as well as buy-in from large project customers that will help offset rising energy costs. For example, data center companies pay for the energy and infrastructure used for their projects, just like any other customer, which helps fund the development of new energy resources to support their demand. Notably, increased load from data centers helps spread fixed costs across a broader customer base, reducing cost pressure on other customers and keeping rates fair for residents.
Further, large-scale infrastructure investments required to power a data center have the potential to benefit the grid where they are constructed. Upgrades to systems due to projects from new large-load customers will serve not only those projects but may also improve grid reliability through upgrading and installing new poles, lines and equipment.
“These proposed investments to add technology, bury power lines and clear trees are essential to improving reliability for customers,” says Snyder. “We are excelling at the basics and building for the future, modernizing the electric grid to deliver safe, reliable and affordable electricity today and into the future. In 2024, Consumers Energy carried out 150 major upgrades across Lower Peninsula communities, cleared tree branches from over 7,000 miles of power lines — addressing the No. 1 cause of power outages in Michigan — and upgraded, rebuilt and expanded over 100 substations.”
Cool climate conditions with low humidity levels, plentiful land and sales tax incentives for equipment also mark the state as a top destination for siting data centers. Aside from its powerful energy infrastructure, Michigan and its largest utility have a lot to offer tech companies looking to build.
This Investment Profile was prepared under the auspices of Consumers Energy. For more information, visit ConsumersEnergy.com/MichiganGrowth.
