Econlib iconEconlibSep 23, 2026 ~7 min source read

Put It in Your Own Backyard: Data Centers, Local Control, and the Limits of Public Hearings

A small Michigan town’s surprise deal with Microsoft illustrates tensions between corporate infrastructure projects and local residents; the author critiques arguments that dismiss local objections as mere obstacles to progress.

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A township supervisor in Dorr, Michigan signed a land sale to Microsoft for a data center without a public hearing, provoking resident outrage.

Jeff Polet argues that dismissing local participants at town meetings ignores their stake in place and community continuity.

Polet questions Michael Munger’s framing that public objections create a prisoner’s dilemma favoring development, suggesting a different collective-action problem may apply.

The useful part

Instead, to their dismay, they discovered the township supervisor had, without a public hearing, already signed an agreement. Microsoft, never bothering to send a representative to meet the public, now held the deed to more than 250 acres of prime farmland, an arrangement citizens knew nothing about until everything was signed and sealed. With the land already sold and the ink dry, the citizens' impotence turned to repressed rage.

How it works

  • Munger's main focus is on the building of data centers, which he regards as vital infrastructure.
  • Perhaps people are realizing that their lives are better when they're simpler, and part of that simplicity is sticking to a place and getting to know your neighbors and working and worshipping with them.
  • I can't say for sure, but I'm sure not going to dismiss the concerns of people whose only fault was that they showed up.
  • My first objection involves Munger's conflating of housing and data centers as if they have an equal claim as public goods.
  • Think, for example, of how the interstate highway system destroyed neighborhoods and towns and people's lives and livelihoods.

What to take from it

I say "repressed" because the citizens have not, as yet, taken matters into their own hands. Munger characterizes this as a "prisoner's dilemma," although I don't think the metaphor quite fits, because he seems to believe that one of the parties should be able to get off scot-free. I'd think the "tragedy of the commons" more nearly fits the situation he describes, especially given the resulting allocation of resources.

Example or evidence

  • No doubt the nameless and faceless drones at Microsoft had bemused looks on their faces as the citizens of Dorr organized their seemingly pointless protests.
  • One imagines a Microsoft exec in his Seattle high-rise pulling on a cigar, a martini in his other hand, smiling smugly at the thought of a small group of Michiganders thinking they could stop the course of...
  • The ensuing conflict involves those who want to build the centers, and of course those who use AI, and the people who live in places where the centers are to be built.
  • In residential development, monoculture means single-family homes, built to a production builder's cookie-cutter template.

Details worth keeping

Business Economics Economic Growth Monopoly By Jeff Polet, Sep 23 2026 SHARE POST: --> On a chilly Thursday evening last December, citizens in Dorr, Michigan, a small community about a half-hour south of Grand Rapids, attended a town hall meeting to discuss the possible construction of a data center on the north end of town. To my knowledge, no lawsuits have been filed, pitchforks wielded, or Sabo-tabbies unleashed. After all, what mattered Dorr's 7,900 souls when progress was at stake?

Related coverage

  • Ruralmom: A beautiful backyard brings so much joy and relaxation, especially during the warm summer months.
  • Econlib: In the last thirty years or so, the United States has seen persistent shortages of housing, waste disposal facilities, electricity generation, and oil refineries.

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