Cloverland Electric Cooperative’s board of directors and leadership hear and respect member concerns about the data center located across from Lake Superior Academy in Dafter. While Cloverland does not own or operate this facility, we understand the concerns regarding its impact of noise. Our staff is actively engaged with the data center operator and township officials to encourage responsible solutions. As a cooperative, we strive to balance community needs with our obligation to provide safe, reliable and affordable electric service to all members.
As part of our long-term strategy to stabilize rates and manage rising infrastructure costs, we have supported efforts to attract large-load members, including data centers, to our region. These efforts align with our responsibility to provide equitable service to all members while sustaining financial health for the cooperative. We also recognize the importance of listening to concerns and working together to find community-minded solutions.
We encourage Cloverland members to review the frequently asked questions regarding data centers on our website for more information on the issue. In addition, we want to address the direct questions asked by members of the cooperative during public comments at our regular board meeting on July 23, 2025.
Q: How did the data center located across from Lake Superior Academy in Dafter come about?
A: This question is best directed to the data center operator. Cloverland did not select or recruit the specific site across from Lake Superior Academy. The company was introduced to the area by the Michigan Economic Development Corporation (MEDC) as part of broader efforts to bring economic development to the Upper Peninsula. While Cloverland does not control property purchases or zoning, we verified infrastructure feasibility once contacted.
Q: How are decisions on this type of project made?
A: Cloverland cannot speak on the decisions of any local government or private business. As a public utility, Cloverland has a statutory obligation to provide electric service to all approved customers in its service territory. We cannot deny service based on the nature of the business.
Q: Did Cloverland seek out the company that owns the data center located across from Lake Superior Academy in Dafter?
A: No. Cloverland did not directly recruit or initiate the siting of this company. However, we have participated in conversations with state and regional economic development organizations to attract industrial members to our service area. Once introduced, our role was to evaluate the feasibility of providing electric service. This article may be helpful in answering the question about how the data center chose the site.
Q: Did Cloverland alert the company to the property located across from Lake Superior Academy in Dafter?
A: No. Once the company identified the site, Cloverland confirmed its proximity to a substation and assessed whether the necessary infrastructure could support their needs. Land use decisions were made independently by the company and local officials.
Q: Why was a Cloverland representative present at Lake Superior Academy’s board meeting in November 2024?
A: Like most electric cooperatives, Cloverland requires an easement for new services or service upgrades, which is signed by neighboring property owners. Easements are standard business practice for any cooperative member. Any new or existing construction requires an easement, so Cloverland’s representative was fulfilling the work required on neighboring properties.
Q: Do data centers pay a lower rate for energy compared to residential or commercial members?
A: While their energy rate may appear lower due to their load size and contract type, most data centers operate on interruptible rate agreements. This means they must shut down during peak demand periods – or pay a significantly higher penalty rate. This structure helps reduce power supply costs for the cooperative during critical times.
Cloverland has many industrial members with high load factors (defined as using steady, around-the-clock usage). We work with each member to create customized rate agreements based on their unique business operations. As with all members, Cloverland does not disclose specific contract details.
Q: What is Cloverland doing to receive member input in relation to issues with the data center?
A: Cloverland’s meetings are open to members of the cooperative and the board of directors welcomes input from our members. The cooperative is actively engaged in conversations with local officials and the data center operator to support responsible solutions regarding the noise matter across from the Lake Superior Academy in Dafter. While the cooperative does not control data center operations, our staff is committed to sharing member concerns and advocating for outcomes that reflect the best interests of our community.
Although Cloverland does not have authority over zoning, permitting or land use decisions, we are happy to work with the local townships and municipalities to provide information. Cloverland serves many townships throughout the Eastern Upper Peninsula and the desires and needs of each government may be different.
Q: Do any of the Cloverland Board of Directors have a financial interest in data centers?
A: No. Neither board members nor Cloverland staff have any financial interest in data centers.
Q: Do data centers that are coming to the area provide community services and local careers?
A: This question would best be directed to the data center operator as they are responsible for staffing their facility.
Q: What benefit do data centers provide to the cooperative as members?
A: Cloverland provides electric service to all approved members, including residential, commercial and industrial operations. Our leadership has supported efforts to attract large-load members, like data centers, because their steady, high volume energy use generates consistent revenue. This helps cover fixed system costs and offsets declining usage in other sectors which reduces rate pressure for all members.
Preliminary results from our cost-of-service study* confirm that data center loads support long-term rate stability.
*A cost-of-service study is a financial analysis used to ensure each member class pays rates that reflect the actual cost to serve them. As a member-owned cooperative, every dollar collected goes back into maintaining and improving service—not toward profit.
Closing Statement
Cloverland will continue to prioritize open communication and thoughtful engagement as we navigate this issue and others. We encourage members to stay informed, attend monthly board meetings and share feedback as we work together to serve the needs of our members and communities.