EAST LANSING, Mich. –  Data centers could generate thousands of jobs and up to billions of dollars in net new economic impact for Michigan communities, according to a new analysis from East Lansing-based consulting firm  Anderson Economic Group, commissioned by [consumersenergy.com] Consumers Energy.

AEG completed an independent economic and fiscal impact analysis of a data center development with three hypothetical scenarios for construction investment and long-term operations employment in Michigan. To complete this analysis, AEG followed a methodology using research of publicly-available information on proposed data centers in Michigan and elsewhere.

Findings include:

• The construction spending of a data center in Michigan could generate $121 million to $5.5 billion in total net new economic output over the construction period, depending on the facility’s scale.
• The construction spending of a data center could directly and indirectly support 806 to 30,278 additional jobs in Michigan during the construction period, depending on the facility’s size.
• Over 20 to 40 years, a data center could generate $624 million to $55.5 billion in net new economic output in Michigan through its operational expenditures, depending on the facility’s scale and longevity.
  
  

The three hypothetical scenarios in AEG’s analysis are broken down by different potential capacities of proposed data centers. Net new economic impact is defined as new economic activities in the study region that are directly and indirectly attributable to the data center’s construction and operations. This includes increases in economic output, earnings, and employment that would not have occurred without the presence of the data center.

“When we approach economic impact analysis, we carefully consider each dollar that is going to be invested or spent due to the event or action being taken. We also carefully consider the power of that dollar in the region and industry of study as it is re-spent,” said Tyler Theile, vice president and director of economic analysis and public policy at AEG. “It is important for developers seeking data center projects in Michigan to be transparent and forthcoming regarding parameters, investors, long-term operations, and ownership, and this analysis serves as a resource to all parties seeking to learn more about potential community benefits and impacts.”

AEG’s economic impact analysis relies on the understanding that proposed data center projects receiving approval in Michigan will be long-term facilities that benefit the community and the economy for many years.

Read the full analysis here. Additional commentary and data from AEG is available upon request.