04, 2026
World

Michigan Gubernatorial Race Intensifies as Jocelyn Benson Proposes Data Center Moratorium and Tax Relief Repeal

Michigan’s high-stakes gubernatorial contest has taken a sharp turn toward technological and economic policy after Democratic nominee Jocelyn Benson launched a television advertise

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Michigan Gubernatorial Race Intensifies as Jocelyn Benson Proposes Data Center Moratorium and Tax Relief Repeal

Michigan’s high-stakes gubernatorial contest has taken a sharp turn toward technological and economic policy after Democratic nominee Jocelyn Benson launched a television advertisement demanding a statewide moratorium on new data centers and the repeal of tax incentives granted to the industry. The campaign commercial places the rapid growth of artificial intelligence infrastructure at the center of the battle for Michigan's highest office.

The campaign broadcast was officially released on September 13, arriving exactly 51 days before voters head to the polls for the November 3 general election. In the commercial, Benson argues that energy-intensive technology hubs threaten to drive up utility costs for everyday residents, asserting that government policy must place the needs of citizens ahead of corporate profits.

Benson, who currently serves as Michigan's secretary of state and is based in Detroit, is competing against Republican nominee U.S. Rep. John James of Shelby Township. Their debate over the expansion of digital infrastructure mirrors a broader national dialogue, as public concerns regarding environmental resources and community economic effects have elevated data centers into a pivotal issue across the 2026 midterm elections.

The technological footprint in Michigan is already substantial, with 70 operating data facilities located across the state, according to industry records compiled by the U.S. Data Center Map. However, the sector is poised for exponential growth, with two additional centers currently under active construction and another 15 developments in the planning stages.

The scope of these incoming facilities marks a dramatic departure from existing infrastructure. Two of the planned developments are described as being magnitudes larger in overall operating capacity than any data center currently running within the state's borders, raising fresh debates about land use and energy distribution.

Among the largest of these ventures is the high-profile Stargate project located in Saline Township. This hyperscale development is currently being built across 250 acres of agricultural land and is engineered to serve the computational needs of major technology enterprises, specifically OpenAI and Oracle.

The resource demands of the Saline Township installation are significant. Projections show the facility will eventually require 1.4 gigawatts of electrical capacity to sustain its operations. That level of power consumption is roughly equivalent to the total electricity required to power one million residential households, fueling anxieties over regional electrical grid strain.

Development of the Saline Township site is being managed by Related Digital, a specialized division of the New York-based real estate conglomerate Related Cos. The overall investment for the sprawling site has been valued at approximately $16 billion, and the initiative has drawn public backing from term-limited Democratic Gov. Gretchen Whitmer.

The project has also introduced complicated political dynamics for Benson due to familial ties. Her husband, Ryan Friedrichs, serves as a vice president of development for Related Companies, the parent organization behind Related Digital.

This connection has triggered pointed attacks from conservative groups. Mission Michigan, an organization supporting James's gubernatorial campaign, publicly criticized Benson’s policy stance, accusing the Democratic nominee of campaigning against the very developments and corporate entities that have financially benefited her household.

Benson’s campaign pushed back aggressively in the newly released commercial, turning the spotlight onto her Republican opponent. The ad contends that James's political efforts are financed by data center corporations and alleges that during his tenure in the U.S. Congress, he worked to force such projects onto local communities.

For his part, James has outlined a contrasting governing approach centered on local self-determination. The Republican congressman has stated that municipal and regional authorities, rather than state officials in Lansing, ought to establish the guidelines and approval processes for data center construction within their jurisdictions.

The clash comes after years of state-level efforts designed to attract digital infrastructure through targeted financial incentives. In 2024, while operating under Democratic legislative majorities, lawmakers approved statutory measures granting sales and use tax exemptions for the specialized computer hardware housed inside large-scale data facilities.

Supporters of those measures, including state Sen. Kevin Hertel, D-St. Clair Shores, defended the 2024 tax policies as a forward-looking, bipartisan economic strategy. Hertel maintained that the legislation opened Michigan to the modern knowledge economy while balancing environmental protections and community well-being.

Despite the enactment of the 2024 statutes, corporate developers continue to assess their financial strategies. Related Digital recently confirmed it is evaluating which tax framework to utilize for its $16 billion Saline Township site, noting it currently anticipates applying for a sales and use tax exemption program that predated the 2024 legislative package.

While Benson’s campaign message clearly calls for an immediate halt to facility construction and an end to state tax subsidies, the advertisement does not define specific parameters or an intended duration for the proposed moratorium, leaving the future regulatory framework of the state's technology sector an open debate ahead of election day.

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