Last spring, the forecasts started rolling in. An ice storm was coming, and it looked like it was going to wallop us.
I stopped by our warehouse to check in with the line crews. Nobody was standing around waiting to see how bad it would get. They were sharpening chainsaws, stocking trucks, and coiling wire. Operational readiness is in our DNA here at Cherryland.
For Cherryland, the storm turned out to be a lot milder than predicted. All that preparation for a punch that never really landed. But the preparation was still worthwhile.
That mindset is exactly how your cooperative is approaching one of the most talked-about topics in our industry right now: data centers.
You’ve probably seen the headlines. These massive computing facilities — the ones powering everything from artificial intelligence to your streaming service — use staggering amounts of electricity. A single hyperscale data center can use more power than every Cherryland member combined, several times over. As they spread across the country, they bring both real opportunity and real risk.
Today, developers are not knocking down our door. We are not actively discussing any data center development in our service territory. That makes it the perfect time to prepare in case they do.
Like every electric utility in Michigan, we’re legally required to serve a large facility if one decides to build here. That’s why we’ve spent this year developing policies aimed at protecting your interests.
These policies start by requiring non-refundable application fees to ensure we don’t spend staff time on speculative projects. If a developer is serious, and they pay the application fee, they will be required to cover all engineering studies and infrastructure upgrades needed to serve them. Additionally, they must pass strict financial screenings, put down significant collateral, and sign long-term contracts with real exit penalties — so if they ever walk away, they don’t leave you holding the bill.
In the spirit of these policies, Cherryland also recently signed onto a national ratepayer protection pledge, a White House initiative aimed at ensuring regular consumers do not subsidize the data center boom.
These requirements put structures in place to protect your interests, without slamming the door on development. A large electric load from a serious, financially sound company could actually benefit members by spreading our fixed costs across a bigger base and helping keep everyone’s rates stable. We’re not anti-growth. We’re anti-you-taking-on-the-risk.
Many developers will hang up the moment they hear how rigorous our requirements are. That’s fine by me. We’re not chasing this, but if the right opportunity ever knocks, we’ll answer from a position of strength.
Storm forecasts remind us not to panic, not to assume the worst, but to always be prepared. That’s how we show up for you when the storm hits and it’s how we’re approaching this one, whether it ever arrives or not.
Whatever is coming our way, your cooperative is ready.
I appreciate Cherryland Electric forward thinking in regards to Data Center….the concerns about protecting members from the added cost of electricity and the possibility of being left with several acres of warehouse looking builds. However Data centers aren’t just about electricity and the money they MIGHT bring.
You said, “We’re not anti-growth. We’re anti-you-taking-on-the-risk.”
Not all growth is good, nor can it be managed even with the best of intentions. Personally I’m of the mind that there is NO AMOUNT OF MONEY that is worth putting our water, wildlife, dark sky and quite peaceful area at risk, a risk that members would be taking should we partner with a Data Center. Cherryland Electric Cooperative and the members/township they serve need to stand firm. Every county and/or township should be looking at their zoning requirements regarding Data Centers and make adjustments to discourage them.
Thanks for the feedback, Margaret. We really are trying to be comprehensive and forward thinking for a problem that has not come knocking on our door, and may never do so.
I certainly can’t speak for local townships. But, as an electric utility in the state of Michigan, we have a legal obligation to provide service. That takes “saying no” off the table for electric utilities. As you point out, it’s possible those requirements need revisited, but that would require legislative intervention. Here locally at the co-op, our focus is on making sure we do whatever we can legally to manage this on your behalf.
As I said, I have not received any inquiries from data centers and genuinely do not anticipate getting any soon. But if we do, we now have strong policies in place to help us navigate it.
I think it’s important that all Cherryland officers agree not to sign NDAs (non-disclosure agreements) with any potential data center promoters. These have been used to prevent utility and public officials from publicizing any data center activity until it’s too late to stop the project.
Agree?
As a licensed Professional Electrical Power Engineer in four states with 40 years of experience consulting in industrial controls, power generation, instrumentation and mechanical systems. I know from experience all water cooling use consumption and electrical power needs known, unknown can be solved by engineering regarding any new AI data centers.
Any help needed is always available.
We do not want these centers in our neighborhoods for a plethora of reasons. I hope Cherryland Electric turns down any opportunity to work with these people. Not only are we concerned with rising electrical costs, let’s not forget the noise, air and water pollution and water consumption which is all bad for Northern Michigan. Building data centers is supporting the infrastructure for mass surveillance on the population. The projections state that up to 30% of current U.S. jobs will be automated by 2030. What then? 30% of people out of work? Does that dystopian picture sound good to anyone? If Cherryland turns them down, that stops them in their tracks. Let’s not ruin our beautiful state just so we can turn our beautiful natural area into a depressing, noisy, polluted, unemployed, police state.
I understand your concerns, Mandi. As I mention in the column, Cherryland is legally obligated to provide electric service to homes and businesses in our service territory. Saying no is quite simply not a legal option. While that may feel frustrating, it’s important to remember that those same laws mean we can’t refuse you service at your home or business. The approach we are taking at the co-op is to put in place strong protections via policy so that IF a large electric load or data center develops in our service territory we can manage that without our members subsidizing the cost. Today, we do not have any interest from data centers, this is simply a precaution. Hope that alleviates some of your concerns.
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