Updated July 18, 2025
Why are data centers interested in operating in our Eastern Upper Peninsula service area?
Data centers, often referred to as data mines, seek locations with low-cost, reliable electricity, affordable land and proximity to substations to reduce transmission losses. Among all Michigan electric utilities – including municipal and investor-owned – Cloverland offers some of the lowest electricity rates. These factors make our service territory attractive to data mining operations.
What is Cloverland’s part in serving data centers?
As a member-owned, not-for-profit electric cooperative, Cloverland follows the same principles as the 900+ other co-ops nationwide. When a new member requests electric service within our territory, we are obligated to provide it – just as we do for any residential, commercial or industrial member. In fact, public utilities have a statutory duty to serve customers in their service territory and cannot deny service due to the nature of the business.
How do data centers benefit Cloverland members?
Electric usage across our membership has steadily declined in recent years, as shown in the chart below. At the same time, the cost to maintain and upgrade the electric grid continues to rise. Adding large-load commercial or industrial members helps offset these fixed costs, which in turn helps keep rates stable for all members. President & CEO Mike Heise discussed bitcoin in the March | April 2023 Cloverland Connections manager’s message column.
Is there a danger of data centers requiring too much electricity usage?
Cloverland has ample capacity under its existing power supply contract with Wisconsin Electric (WEC), which remains in effect through 2029. As that contract nears its end, Cloverland will reevaluate its power supply strategy and rates. In the meantime, we continue to monitor changes in technology, efficiency and demand across all large-load customers.
How do data centers for bitcoin differ from artificial intelligence (AI)?
A key difference is energy flexibility. Data centers that do bitcoin mining operations can be powered down during peak demand periods to reduce strain on the co-op’s system and avoid additional power supply costs. In contrast, AI data centers typically require constant 24/7 operation, which increases overall system demand and limits opportunities for peak shaving.