Leonard Joins Push Against Data Centers In Michigan, Calling For Moratorium, End To Subsidies

Michigan Advance

January 20, 2026

In his push to earn the Republican nomination in the Michigan governor’s race, former Michigan House Speaker Tom Leonard is calling on the Legislature to end tax breaks for data centers and establish a one-year pause on siting new facilities.

At the end of 2024, lawmakers approved a slate of bills to create tax breaks for data centers on equipment, prompting an influx of data center proposals in communities across Michigan. The flood of data center deals has sparked frustration with government transparency alongside concern from residents that the resource-intensive facilities will bring higher energy costs while draining water reserves.

“Michigan families are literally paying the price for corporate land grabs,” Leonard said in a statement. “Residents should not be forced to subsidize sweetheart deals for massive data centers while their own bills skyrocket. That’s a rigged game that benefits insiders at the expense of everyday citizens. Which is not only wrong; it’s insulting.”

In response, Leonard is calling on the Legislature to repeal any existing and pending state-level subsidies, tax incentives and “preferential utility arrangements” for data centers, while placing a one-year moratorium on approval for new data center sites. During that time, lawmakers would be tasked with developing a legal framework that addresses grid reliability, ratepayer protections, land and water use and local consent.

“A temporary moratorium gives us the time to get this right and provide an open, transparent process that forces state and local governments to listen to the people,” Leonard said. “This is a chance to protect ratepayers, respect local communities, and demand transparency before any more blank checks are written.”

Also seeking the Republican gubernatorial nomination are U.S. Rep. John James (R-Shelby Township), Michigan Senate Minority Leader Aric Nesbitt (R-Porter Township), former Michigan Attorney General Mike Cox, former Michigan Speaker of the House Tom Leonard, AxMITax founder Karla Wagner, Genesee County truck driver Anthony Hudson and Ralph Rebandt, a retired pastor from Oakland County.

State Rep. Jennifer Wortz (R-Quincy) has shared she will introduce Leonard’s proposed reforms in the House. Reps. Dylan Wegela (D-Garden City), Erin Byrnes (D-Dearborn) and Jim DeSana (R-Ash Township) have also introduced legislation to repeal tax breaks for data centers.

“For too long, ratepayers have been asked to pay more without seeing better service or accountability,” Wortz said in a statement. “When families will be paying for these decisions for decades, taking a one-year pause to conduct a thorough review is just common sense”

Alongside his proposals, Leonard launched a website with a petition calling on Gov. Gretchen Whitmer and the Michigan House and Senate to approve a moratorium on data centers and eliminate subsidies for these facilities.

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