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Power Surge in Great Lakes Region Sparks Fears Over Water Use

By: Charlotte Burke • February 16, 2026 • Lansing, MI
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photo courtesy Pixabay

(LANSING) - A sharp rise in electricity demand across the Great Lakes basin is driving a wave of energy projects -- and raising new concerns about pressure on the region's vast freshwater resources.

After decades of flat or declining use, power consumption is climbing again due to expanding data centers, new manufacturing, and the continued operation or revival of major power plants, according to reporting by Circle of Blue.

Several coal-fired plants in Michigan and Indiana that were slated for retirement are remaining online under federal directives, while the Palisades Nuclear Generating Station on Lake Michigan is preparing to restart after being shut down for four years. Utilities are also planning new natural gas plants, small modular nuclear reactors, and expanded transmission lines to meet projected annual demand growth of 2% to 3% over the next decade.

Environmental experts warn that the energy expansion could significantly increase withdrawals from the Great Lakes. The Palisades facility alone is expected to draw up to 141 million gallons of water per day from Lake Michigan for cooling operations. Additional consumption from energy-intensive industries and large data centers could further increase total water use.

In response, state and binational organizations -- including the Great Lakes Commission -- are reassessing policies governing water withdrawals and energy development to ensure long-term sustainability and ecosystem protection.

Mike Shriberg, director of the University of Michigan Water Center, said decisions made now will shape the region's future.

"The response will have a massive impact for the Great Lakes and for our energy future," he said.

With more than $3 billion slated for new and upgraded energy infrastructure, policymakers face the challenge of balancing reliable power supply, economic growth, climate goals, and the protection of one of the world's largest freshwater systems.