Microsoft is at the center of a growing backlash after revealing plans for a major data center in a water-stressed Michigan township, raising concerns over sustainable resource use. The project could strain local water supplies already under pressure from prolonged drought and aging infrastructure.
- Microsoft’s proposed data center requires up to 2.5 million gallons of water per day.
- The township has experienced repeated water shortages, with one reservoir at 47% capacity in late 2025.
- Initial power draw of 15 MW, with potential to expand to 100 MW, impacting DTE Energy’s grid.
- Environmental review underway under Michigan’s State Water Quality Plan.
- Potential regulatory delays may affect project timeline and investor confidence.
- DTE Energy (DTE) and Enbridge (ENB) shares saw minor declines amid uncertainty.
A proposed data center development in a rural Michigan township has ignited community opposition after Microsoft confirmed its involvement. The facility, slated to support cloud computing operations, would require up to 2.5 million gallons of water daily—equivalent to the annual consumption of nearly 6,000 households. This figure is especially concerning given that the township has experienced recurring water shortages over the past five years, with one local reservoir operating at just 47% capacity as of late 2025. The project’s environmental impact has drawn scrutiny from regional officials and resident advocacy groups. The proposal includes an initial phase of 15 megawatts of power draw, with potential expansion to 100 MW, which would place significant demand on DTE Energy’s regional grid. Environmental regulators are now reviewing whether the data center complies with Michigan’s updated water withdrawal standards under the State Water Quality Plan. Microsoft’s engagement comes amid broader industry trends: global tech firms are increasingly turning to Midwest locations for energy-rich, low-latency infrastructure. However, this move highlights tensions between digital infrastructure expansion and climate resilience. Analysts note that such developments could trigger stricter permitting hurdles, particularly for companies with ESG (Environmental, Social, and Governance) commitments. Stock market reaction remains muted but cautious. Shares of MSFT have held steady, while DTE Energy (DTE) and Enbridge (ENB), which provides pipeline infrastructure support, saw modest declines in early trading. Investors are monitoring the regulatory path ahead, as delays or rejections could affect capital allocation timelines and long-term yield expectations.